France can't count on ECB to fix debt woes, central bank chief says - Reuters

The head of France's central bank has said the country cannot rely on the European Central Bank to resolve its fiscal difficulties, according to Reuters. The remarks underline a long-standing principle in the euro area: monetary policy is set for the currency bloc as a whole, not tailored to any single member's budget problems. The ECB's mandate centres on price stability, and its tools are not designed to fund government borrowing or substitute for national fiscal choices.

For markets, the message is a reminder that sovereign risk in the eurozone remains a national responsibility. France's borrowing costs, bond spreads against Germany and the trajectory of its deficit and debt are therefore likely to stay in focus for investors assessing euro-area assets. The euro's exchange rate and peripheral bond markets may also react to any shift in how credibly France addresses its public finances.

What to watch: upcoming French budget plans and deficit projections, any credit-rating assessments, and commentary from ECB officials on the limits of their support. Together, these will shape how markets price French debt relative to its neighbours.