ECB’s Lagarde says fall of any Euro Zone government would be “worrying”
European Central Bank (ECB) President Christine Lagarde warned on Monday that the fall of any government in the euro zone would be “worrying,” though she said France is not currently in a situation that would require intervention by the International Monetary Fund (IMF).
Speaking to Radio Classique, Lagarde emphasized the importance of fiscal discipline in France and said she is closely monitoring the situation with French bond spreads, News.Az reports, citing Reuters.
The comments come amid political turmoil in France, where opposition parties have announced plans to bring down the minority government in a confidence vote scheduled for September 8. The vote was prompted by Prime Minister Francois Bayrou’s unpopular budget plan for 2026, which has already affected French stock and bond markets.
As the euro zone’s second-largest economy, political instability in France could have wider implications for the European financial system, Lagarde suggested, highlighting the need for careful fiscal management.
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