Is France collapsing? The European bank will not intervene in the country's severe economic crisis

European Central Bank President Christine Lagarde made it clear that the bank will not intervene in France's debt crisis, emphasizing that the solution lies in the country's domestic policies. France is grappling with a public debt of about 120% of GDP and soaring bond yields, alongside student protests.

European Central Bank President Christine Lagarde put an end to speculation and made it clear that the bank will not intervene in France's growing budget crisis. During an event in Bangkok, Lagarde said that the solution to the precarious financial state of the eurozone's second-largest economy must be internal. "The primary and main solution lies at home, in France, and is related to fiscal policy," she stressed. France is facing a severe public debt crisis that threatens to drag down the entire European Union. Public debt has reached nearly 120% of GDP, and 10-year bond yields have surged to nearly 5%, the highest level in two decades. The situation is exacerbating government borrowing costs, slowing economic activity, and sparking unprecedented student protests across the country. However, Lagarde noted that the rise in bond yields is not unique to France but a global trend also seen in the US, Germany, and Japan, which she attributed to rising government debts and a persistent energy shock caused by the Iran war.