Mélenchon's Debt Cancellation Plan Sparks Eurozone Alarm

France's central bank chief Emmanuel Moulin has denounced presidential candidate Jean-Luc Mélenchon's plan to cancel part of the country's debt, calling it 'dangerous' and potentially triggering a French exit from the eurozone.

Moulin argued that Mélenchon's proposal would lead to inflation and higher borrowing costs for France at a time when its bond yields are already at their highest level since 2008. He also claimed that canceling debt held by the central bank is 'illegal' because it goes against EU treaties.

Mélenchon shot back on social media, accusing Moulin of spreading false information and claiming France deserves a different type of governor who doesn't get involved in presidential campaigns.

European Central Bank president Christine Lagarde also condemned Mélenchon's plan as 'financially dangerous' and 'a large waste of time', echoing the concerns of centrist politicians and economists. Nobel Prize-winning economist Philippe Aghion argued that the plan would spark France's bankruptcy and the break-up of the eurozone.