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Video length: 3 min
Public deficit: erasing France’s debt to the ECB, a proposal that is difficult to achieve
Among the proposals put forward to resolve the French deficit, the “Vrai ou Faux” team looked at that of Jean-Luc Mélenchon. The latter wants the European Central Bank to cancel part of France’s debt.
(france info)
Among the proposals put forward to resolve the French deficit, the “Vrai ou Faux” team looked at that of Jean-Luc Mélenchon. The latter wants the European Central Bank to cancel part of France’s debt.
Several political figures have made proposals to resolve the public deficit, including Jean-Luc Mélenchon. “One of the solutions for him is for the European Central Bank to remove part of this debt”explains Louis Augry, journalist from the “True or False” unit, on the set of 19/20 info. “The ECB must cancel the portion of France’s debt that it has in its coffers”declared the leader of France Insoumise.
The ECB bought 25% of French treasury bonds
“Today, France is in debt of more than 3,000 billion euros, 110% of GDP”recalls Louis Augry. “When France needs money, the public treasury in charge of the debt issues treasury bonds on the bond market”, he continues. These treasury bonds can be purchased by banks, which lend money to the state. “Three quarters of French debt is held by banks, insurance companies or pension funds”, indicates Louis Augry. But for the ECB, which bought 25% of French treasury bonds, to eliminate the debt, “all stakeholders must come together around the table or change the current European treaties”.
