Bundesbank President Joachim Nagel has rejected French far-left leader Jean-Luc Mélenchon’s proposal to cancel the 636 billion euros in French sovereign debt held by the Eurosystem, primarily through the Banque de France. He warned that this measure would violate EU treaties prohibiting monetary financing of governments and could trigger hyperinflation. France’s debt stands at 117.5% of GDP, with interest payments projected to exceed 100 billion euros annually, surpassing the country’s defense budget. The proposal comes as Mélenchon includes it in his campaign platform for the 2027 French presidential election.
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