French central banker: markets may be over-reacting to politics

France can ​pass its ​2027 budget even without ‌a vote ​in parliament and financial markets are likely over-reacting to ‌the political situation as a presidential election next year approaches, Bank of France Governor Emmanuel Moulin said ‌on Monday. French lawmakers are in the process ‌of debating the government's 2027 budget, but its lack of majority means it may need to resort to ⁠passing ​the legislation ⁠by forcing it through parliament with constitutional powers without ⁠a vote.

"It is highly likely that we will ​have a budget, and so the markets may ⁠be over-reacting to the political situation in France," Moulin ⁠told ​a conference in Barcelona organised by El Pais. "Furthermore, it is also important that all ⁠the candidates standing in the presidential election clearly demonstrate ⁠their commitment ⁠to reducing the deficit, which is essential for reducing France's debt," he ‌added.