Jean-Luc Mélenchon proposes freezing French public debt

A political debate has emerged following a proposal by Jean-Luc Mélenchon to ‘freeze’ French public debt through the support of the Eurosystem, including the European Central Bank and the Banque de France.

The proposal challenges the current reliance on financial markets for state financing. Proponents argue that when debt is held on the Eurosystem's balance sheet, it is shielded from the daily volatility and decisions of private investors. This would prevent private creditors from influencing government policy through bond market fluctuations or interest rate hikes.

Currently, French public debt is projected to reach 3,536 billion euros by the first quarter of 2026, representing 117.5% of GDP. The debate highlights the tension between democratic political choices and the disciplinary mechanisms of global financial markets.