France is not currently in a situation that would require intervention from the International Monetary Fund (IMF), but any risk of a government collapse in the eurozone is "worrying", said European Central Bank President Christine Lagarde.
Speaking on Radio Classique, Lagarde said that fiscal discipline remains essential in France and that she is monitoring the situation with French bond spreads very closely.
French opposition parties have said they will push the minority government into a confidence vote on Monday, September 8, which Prime Minister François Bayrou unexpectedly announced last week over his unpopular austerity plans for 2026.
At the moment, everything indicates that he will not win a vote of confidence and will have to resign.
This situation is hitting the stock and bond markets in France, the second largest economy in the eurozone.
"Countries seek IMF intervention in conditions in which the current account is in severe deficit and in which the country cannot meet its obligations: this is not the situation in France today," the ECB president said.
(BalkanWeb)
