The President of the European Central Bank, Christine Lagarde, has expressed concerns over the risks of a governmental collapse in any Eurozone country, following questions about the potential fall of the French government.
Speaking on French broadcaster Radio Classique, Lagarde noted that since taking her position at the European Central Bank (ECB), she has observed that “the occurrence of political risks has a clear impact” on the economy and financial markets evaluation.
The ECB president’s comments align with the political crisis in France, as French Prime Minister François Bayrou seeks the confidence of the National Assembly.
According to Agence France-Presse, the French Prime Minister may fail to secure the necessary parliamentary support, possibly resulting in his resignation.
Christine Lagarde downplayed the possibility of France coming under the tutelage of the International Monetary Fund (IMF).
“Countries request IMF intervention when the current account is seriously in deficit and the country cannot meet obligations: this is not the case for France,” she stated.
Lagarde led the IMF between 2011 and 2019.
François Bayrou declared on Sunday that the “question at stake” in the confidence vote on September 8 is not about the “fate of the prime minister, but about the fate of France.”
The French Prime Minister took office in December last year.
