by Balazs Koranyi and Frank Siebelt
FRANKFURT (Reuters) – European Central Bank (ECB) officials have no plans to discuss using its emergency bond-buying program to help France and say that t is up to French politicians to reassure investors after the uncertainty caused by the calling of early legislative elections, five sources told Reuters.
The markets are particularly concerned about the outcome of the next legislative elections on June 30 and July 7, particularly in the event of a victory for the National Rally (RN), and some analysts are speculating on a possible intervention by the ECB.
The five ECB officials, who requested anonymity due to the sensitivity of the matter, said they had not discussed using the ECB’s emergency bond-buying program. to come to the aid of France and that they were not planning to do so at present.
The sources generally agreed that it was up to French politicians to convince investors of their ability to implement a reasonable economic policy. Two of the sources even suggested that the ECB should not intervene until a new government is formed and a fiscal strategy is presented.
An ECB spokesperson declined to comment.
French Economy Minister Bruno Le Maire warned on Friday of the risk of a financial crisis in France if the union of the left or the far right were to win the early legislative elections.
Marine Le Pen’s RN proposes a reduction in VAT, notably to 5.5% on energy, food and gasoline.
Christine Lagarde, president of the European Central Bank (ECB), for her part was content to evade a question on Friday on the turbulence that occurred on the French financial markets after the dissolution of the National Assembly, contenting herself with declaring that the The institution would achieve its inflation objective.
(French version Camille Raynaud)
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