Matthieu Pigasse

Mélenchon Plans Central Bank Debt Cancellation, Critics Warn

French far-left candidate Jean-Luc Mélenchon has revived a proposal to cancel 18% of the public debt held by the Bank of France to free fiscal space, a plan that has drawn cautious support from some allies but fierce legal and economic criticism from opponents. Critics warn it would amount to central-bank financing of the government and could spook markets, with debt levels around €3.5 trillion and a debt-to-GDP ratio above 116%, while EU treaties explicitly prohibit such moves and officials say the idea is dangerous and unworkable.