PARIS (Reuters) -France is not currently in a situation that would need the International Monetary Fund (IMF) to intervene but any risk of a government falling in the euro zone is “worrying”, European Central Bank President Christine Lagarde said on Monday.
Speaking to broadcaster Radio Classique, Lagarde said fiscal discipline remained imperative in France, and that she was looking very attentively at the French bond spreads situation.
French opposition parties have said they will bring down the minority government in the September 8 confidence vote which Prime Minister Francois Bayrou unexpectedly announced last week, over his unpopular plans for a budget squeeze in 2026.
This has hit the stock and bond markets of France, which is the euro zone’s second economy.
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)
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