Bank of France nominee Denis Moulin backs joint euro area debt and calls French deficit manageable

Emmanuel Macron’s nominee to lead the Bank of France, Denis Moulin, said he supports more joint borrowing across the euro area to finance new investment priorities, even as he warned that France faces a serious but manageable challenge in reducing its budget deficit.

According to Bloomberg, Moulin backed shared euro debt for projects tied to the bloc’s shifting economic needs, a stance that aligns him with the idea that Europe may need common financing tools to support areas such as competitiveness, defense, energy and industrial policy. His comments come at a time when governments across the euro area are debating how to pay for large-scale spending without putting too much strain on national budgets.

Moulin also addressed France’s own fiscal position, saying the deficit problem is serious but not catastrophic. That view suggests he sees room for adjustment, while acknowledging the pressure on public finances in the euro zone’s second-largest economy. France has been under scrutiny from European institutions and investors over its budget path, especially as higher borrowing costs and slowing growth make deficit reduction more difficult.

His remarks matter because the Bank of France plays a central role in shaping economic debate in the country, and the person chosen to lead it can influence how markets and policymakers interpret France’s fiscal direction. Support for joint euro-area debt could also be significant in Brussels, where the idea has long been controversial: some countries see it as a practical way to fund shared goals, while others worry it would weaken budget discipline.

For now, Moulin’s position suggests a two-track message: France must get its own finances under control, but Europe may still need collective financing for projects that serve the whole bloc. The balance between those two goals is likely to remain a central issue as euro-zone governments prepare for new spending demands and tougher budget constraints.