Lagarde: France’s Debt Fix Must Come From Its Own Fiscal Policy

Lagarde's framing quietly draws a line: the ECB is not offering a backstop for a sovereign debt problem inside the euro area, leaving the adjustment burden with national budgets. That matters for French debt dynamics and for how euro-area sovereign risk is priced when fiscal slippage meets a central bank that keeps its own stance unchanged. The open question is whether this remains rhetorical boundary-setting or becomes tested if French fiscal politics stall.