Lagarde Rejects Mélenchon Debt Cancellation Proposal

European Central Bank (ECB) President Christine Lagarde has rejected a proposal by French presidential candidate Jean-Luc Mélenchon to cancel France's debt held by the central bank. The plan, which would see 18% of France's debt wiped out, is deemed 'really not a good idea' by Lagarde.

The proposal was first floated during the COVID-19 pandemic and has been revived by Mélenchon while on the campaign trail. Critics argue that it would be a 'clear violation of the treaty' on the European Union.

Mélenchon's plan has already drawn criticism in France, with some calling it 'catastrophic'. The French Prime Minister described it as destroying France's most important asset: trust.