Bank of France governor says ECB conditions for French bond aid are unmet

At a press interview in Bangkok, Bank of France governor Emmanuel Moulin stated that the surge in French government bond yields does not satisfy the strict conditions for European Central Bank intervention. He pointed out that the benchmark 10-year yield is approaching the 5% psychological level, yet there is no evidence of market disorder or eurozone fragmentation. Moulin highlighted that the primary concern is France's fiscal outlook, with debt projected around 120% of GDP, far above the EU ceiling.

He warned that higher borrowing costs stem from uncertainty over the upcoming budget vote and that meaningful debt reduction will depend on tax hikes and spending cuts. While acknowledging the ECB's Transmission Protection Instrument, he affirmed that the French banking system remains resilient. Finally, he stressed that budgetary decisions are the responsibility of lawmakers, not the central bank.