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[POLITICS] · France, Estonia · 5 sources

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Jean-Luc Mélenchon proposes canceling part of French public debt

Jean-Luc Mélenchon, leader of La France insoumise, has proposed canceling a significant portion of French public debt, estimated between 600 and 635 billion euros. This amount represents approximately 18% to 20% of France's total public debt, specifically the portion held by the Bank of France on behalf of the European Central Bank (ECB).

Mélenchon suggests that this cancellation could be achieved through a 'simple writing game' that would not incur costs, potentially freeing up budgetary margins for investment. The proposal includes a condition that the canceled funds be reinvested into ecological transformation. While some economists, such as Jézabel Couppey-Soubeyran, suggest the technical mechanisms are imaginable without destabilizing the ECB, others are highly critical.

Critics, including Mathieu Plane of the OFCE, describe the plan as a 'mirage' or a 'mirrors and larks' tactic due to significant institutional hurdles. Implementing such a move would likely require unanimous approval from all Eurozone member states. Political opponents, including Prime Minister Sébastien Lecornu and Jordan Bardella, have dismissed the proposal as a deception or absurdity, warning of potential risks to economic stability.

Entities

Bank of France · European Central Bank · France · Jean-Luc Mélenchon · La France Insoumise · Sébastien Lecornu

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