ECB President Christine Lagarde warned that refusing to repay public debt could undermine investor confidence and raise the cost of future French borrowing / Photo: Facebook @JLMelenchon Christine Lagarde has dismissed Jean-Luc Mélenchon’s proposal to cancel part of France’s public debt as illegal, ineffective and financially dangerous. The dispute comes as rising borrowing costs and weak growth strengthen political challenges to established eurozone policy in France and Germany. “It’s not because you repeat something that doesn’t make any sense, either legally, technically or financially, that it becomes something valid,” the European Central Bank president said after Thursday’s interest-rate decision.
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