Lagarde Opposes Intervention in France's Debt Crisis

Christine Lagarde, president of the European Central Bank, rejected the possibility of intervening in France's debt crisis, saying the main solution lies within the country itself and must be addressed first and foremost through domestic fiscal policies. Lagarde's post opposing intervention in France's debt crisis first appeared on Safir Arjan.

In response to the possibility of intervention in the French debt crisis, Christine Lagarde, the president of the European Central Bank, rejected such a possibility and said that the main solution lies in the country itself and it should be addressed first of all through domestic financial policies.

According to Ambassador Arjan, in response to the question whether there is a plan for the intervention of the European Central Bank, Christine Lagarde stated that the solution to the precarious financial situation of the second largest economy of the European Union should be sought within that country itself.

He said at the "CNN Global Perspectives" event in Bangkok, Thailand: "There are certain conditions that make certain countries more affected, and France is an example of this situation. In the case of France, the main and first solution lies within the country itself and is related to fiscal policies.

France is embroiled in a rapidly escalating public debt crisis that threatens to drag the European Union into trouble. The financial pressure in recent weeks has rapidly gained wider dimensions with the jump in bond yields and the unprecedented student protests that have ignited this country.

France's public debt has reached nearly 120 percent of GDP, and the benchmark 10-year bond yield has jumped to 5 percent, the highest level in more than two decades, raising borrowing costs and slowing economic activity.

According to the CNN report, the sum of these factors, together with the high costs of social welfare in France, have left little room for maneuver for the government; Let alone he wants to address the demands of students and protesters who want solutions to solve the shortage of staff and renovate dilapidated school buildings. Investors are also worried that efforts to reduce the budget deficit will be hindered due to the upcoming presidential elections next year.

However, Lagarde noted that rising bond yields were not unique to France. Bond yields in major economies such as America, Germany, and Japan have also jumped in recent weeks, which is caused by the confluence of several factors, including the increase in government debt and the long-term energy shock resulting from the imposed war against Iran.