Risk of French govt collapse 'worrying': ECB chief

BSS
Published On: 01 Sep 2025, 13:27
European Central Bank chief Christine Lagarde. Photo : Collected

PARIS, Sept 1, 2025 (BSS/AFP) - European Central Bank chief Christine Lagarde voiced concern Monday about the risks of the French government collapsing, warning that political turmoil in any eurozone country weighs on markets.

Lagarde was responding to a French radio question about a September 8 confidence vote that could topple the minority government of Prime Minister Francois Bayrou.

"All risks of government collapse in any eurozone country are worrying," Lagarde told Radio Classique.

"Political developments, and the emergence of political risks, have an obvious impact on the economy, on how financial markets assess country risk, and are therefore a concern for us," she said.

Bayrou stunned France last week by calling a confidence vote following months of deadlock over his government's plans to slash France's mounting public debt.

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