[Interview] ‘If stress in France ends up contaminating the rest of the eurozone, the ECB will have to do something,’ says French economist

France is experiencing a severe political and fiscal crisis, marked by widespread protests over education and living costs. The unrest escalated into nationwide riots, resulting in significant arrests and investor concerns about government spending. The gap in borrowing costs between French and German bonds has widened, indicating financial instability. Political divisions hinder agreement on necessary spending cuts, complicating the situation ahead of upcoming presidential elections. The European Central Bank may need to intervene by purchasing French debt, but such actions are politically sensitive and uncertain.