The warnings suggest that the scale of French financial instability now exceeds the ability of the central bank's support mechanisms to contain it. This vulnerability creates a risk that the ECB cannot prevent a wider debt crisis from spreading among other member states of the currency union.
Wednesday, October 21, 2026
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Paul Krugman Warns France Debt Is Too Big for ECB to Save
Global Markets10 days ago
A systemic financial crisis could be unleashed across the euro area because of deteriorating budgets in Paris, economist Paul Krugman said. The Nobel Prize winner warned that France is on a fiscally unsustainable path and may have grown too large for the European Central Bank to rescue if a solvency crisis occurs.
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