European Central Bank (ECB) Governing Council member Emmanuel Moulin has clarified that the current state of France’s bond market does not meet the criteria for intervention by the ECB. Speaking on France Inter radio on Wednesday, Moulin described the situation as both complicated and serious but emphasized that the ECB’s primary mandate is to control inflation, not to address fiscal issues of individual countries.
Moulin, who is also the Governor of the Bank of France, stated that the ECB’s role is to ensure inflation remains around 2%. He asserted that the conditions for ECB intervention in France’s bond market are not currently satisfied. This statement comes amid growing concerns over the stability of France’s bond market.
The ECB’s stance underscores its commitment to maintaining price stability across the eurozone, even as individual member states face economic challenges. Moulin’s remarks are likely to influence market expectations regarding potential ECB actions in response to fiscal distress within the eurozone.