Banque de France Governor Condemns Mélenchon's Debt Cancellation Plan as Illegal and Risky

Emmanuel Moulin, Governor of the Banque de France, has strongly criticized the proposal by Jean-Luc Mélenchon to erase €630 billion of French debt held by the Banque de France. Making his remarks in an interview on RTL on September 11, 2026, Moulin described the debt cancellation plan as "illegal, dangerous, and unnecessary," citing that it would violate international treaties binding France within the Eurozone.

Mélenchon's proposal targets a substantial portion of the national debt, which currently exceeds €3.6 trillion, or 118% of GDP. Moulin warned that such a measure would lead to significant economic consequences, including increased inflation, higher borrowing costs, and a loss of trust from international markets, likening the situation to a default on a personal loan that damages future borrowing capacity.

While acknowledging that the French economy faces challenges—a growth forecast recently downgraded to 0.4% for 2026 and ongoing external shocks such as the war in Ukraine, the Middle Eastern conflict affecting energy prices, and supply chain problems in the aeronautics sector—Moulin maintained that the economy is far from catastrophic. He emphasized the country's industrial strengths in sectors like data centers, defense, and aeronautics, and underscored the importance of fiscal responsibility.

The French government is actively pursuing €30 billion in savings measures to reduce the public deficit to 4.9% of GDP. Moulin expressed that partial debt erasure proposals from opposition parties, including La France Insoumise, undermine these efforts and could jeopardize France's standing within the eurozone framework.

In sum, Moulin's statements paint a picture of cautious economic stewardship. While recognizing past fiscal errors and external pressures, he calls for adherence to legal agreements and prudent deficit reduction over radical debt cancellation schemes. According to Moulin, merely erasing debt would shift problems rather than solve underlying economic issues and could risk France’s financial credibility and stability.