French Prime Minister Francois Bayrou urges ECB to boost support for EU economy

French Prime Minister Francois Bayrou has called on the European Central Bank (ECB) to intensify its efforts to stimulate economic growth across the EU. In an interview with LCI television, Bayrou emphasized that France needs creditors willing to invest in the country and believe in its future. He stressed that achieving this requires maintaining a positive spread between interest rates and projected GDP growth.

Bloomberg notes that the ECB has already cut borrowing costs eight times between 2024 and 2025, bringing rates down to 2%.

However, France's economic outlook has weakened. Current projections show the country's growth rate trailing behind the eurozone average this year. The government faces mounting financial pressures as its sovereign borrowing costs rise faster than those of other European nations. This widening yield gap reflects eroding investor confidence amid political uncertainty and expanding fiscal deficits.