French bonds’ risk premium has faced pressure amid political uncertainty, Banque de France Governor Emmanuel Moulin said passage of the 2027 budget would be an early move to address it, Reuters reported.
Reuters quoted Moulin as saying, “The solution to France’s problems are in France.” He said the government had ways to move the budget through a divided Parliament if necessary. He urged France to address its fiscal problems through its own budget rather than rely on the European Central Bank (ECB) for a solution.
Moulin spoke at a Deloitte-organized finance conference in Paris on Wednesday, Nov. 4. The official Future of Finance program listed him for a session titled “Ensuring financial stability to accelerate growth in the euro area.” The Banque de France says Moulin has served as governor since June 2, 2026, and represents the institution on the ECB Governing Council.
A separate report by AFP on an Oct. 16 interview with Moulin in Bangkok said he warned that higher interest rates increase public debt costs and make fiscal consolidation more difficult. AFP reported that he said adjustments could combine tax increases and spending cuts, with lawmakers deciding the mix. That creates a fiscal challenge alongside the bond-market pressure: the government faces higher interest costs while working to consolidate public finances. AFP also reported that Moulin described banks and insurers as able to withstand higher rates because of their capital and reserves.
