France's economic situation is serious, given the recent spike in its borrowing costs, but the country currently does not need assistance from the European Central Bank (ECB), Bank of France head Emmanuel Moulin said Wednesday.
French borrowing costs have surged in the current global bond rout, prompting a sell-off in the euro, as investors worry that the country's fragile public finances risk taking a toll on the rest of Europe.
"This gap in our borrowing rates; it's linked to the fact that we have a deficit which is higher than that of other countries in the eurozone and there is political uncertainty over the budget vote," said Moulin, adding that it was vital that the government get its budget through parliament.
Moulin added that the situation could be improved if the government managed to pass a deficit-cutting budget.
Prime Minister Sebastien Lecornu's government, which faces pressure from both far-right and far-left opposition parties ahead of a presidential election in early 2027, aims to reduce the budget deficit from 5.4% of economic output this year to 5% next year.
The French government presented its 2027 budget bill on Oct. 1. Lecornu's two predecessors were both toppled over budget fights in 2024 and 2025.
"Today, there is no need to seek the solution in Frankfurt; the solution is here at home," Moulin told France Inter radio.
"I do not think that the European Central Bank needs to intervene as of now, given the current conditions."
Far-right leader Marine Le Pen said on Tuesday that there should be discussions with the European Central Bank to intervene to ease French borrowing costs.
Asked about her proposal, Moulin said that was not part of the ECB's job.
"Simply, the ECB's mission is fighting against inflation," he said. "Today, we are beyond our target of 2%, so it is not there to respond to countries' budgetary problems."
