ECB President Christine Lagarde said that the extreme left's plan to reduce France's huge government debt by canceling debts held by the central bank is unreasonable and dangerous at the financial level. French presidential candidate Jean-Luc Mélenchon advocates the cancellation of part of French treasury bonds held by the Bank of France and the European Central Bank. As next spring elections approach, this proposal has now become one of the focuses of economic policy debates. “What I'm saying is that a proposal that doesn't make sense from a legal, technical, or financial point of view won't make sense just because you keep repeating it,” Lagarde said at a press conference in Berlin on Thursday. Lagarde, for example, said that this is like someone refusing to repay a loan but still wants to borrow money again. This person either has to pay high financing costs or can't borrow money at all. Lagarde said that Blanchard has explained that “taking money out of one pocket and putting it in another does not mean that the debt has actually been written off.” She also said the idea of writing off debt “is dangerous on a financial level.”

ECB President Christine Lagarde said that the extreme left's plan to reduce France's huge government debt by canceling debts held by the central bank is unreasonable and dangerous at the financial level. French presidential candidate Jean-Luc Mélenchon advocates the cancellation of part of French treasury bonds held by the Bank of France and the European Central Bank. As next spring elections approach, this proposal has now become one of the focuses of economic policy debates. “What I'm saying is that a proposal that doesn't make sense from a legal, technical, or financial point of view won't make sense just because you keep repeating it,” Lagarde said at a press conference in Berlin on Thursday. Lagarde, for example, said that this is like someone refusing to repay a loan but still wants to borrow money again. This person either has to pay high financing costs or can't borrow money at all. Lagarde said that Blanchard has explained that “taking money out of one pocket and putting it in another does not mean that the debt has actually been written off.” She also said the idea of writing off debt “is dangerous on a financial level.”