French far-left leader Jean-Luc Mélenchon has proposed to cancel a large chunk of France's public debt, namely the 18 percent that is currently held by the country's central bank. The rationale is to unlock money for public spending, but is this is even feasible?
Mélenchon, currently a candidate for the presidential elections in April 2027, and seen as a front-runner, first floated the idea during the COVID 19 pandemic and revived the controversial call this month while on the campaign trail.
"All we have to do is take the 18% held by the Bank of France and chuck it in the fire," he said during a campaign speech, referring to roughly €600 billion.
His pitch has gained significant support from high-profile and left-leaning investment banker Matthieu Pigasse. In fact, Pigasse shared a stage with Mélenchon at a recent political rally of his party -- France Unbowed (LFI).
"Public debt can be cancelled, as Jean-Luc said, without any economic or financial impact," Pigasse said at the LFI rally last weekend to a large applause.
