ECB’s Villeroy Says Debt Cancelation Would Be Dangerous Path

European Central Bank policy maker Francois Villeroy de Galhau has rejected suggestions that the institution should consider writing off the public debt it bought during the pandemic, saying to do so would backfire.

“To consider debt cancellation would be a very dangerous path,” the Bank of France governor told Ouest France newspaper in an interview. “When the euro was introduced, France, like the other states, undertook by Treaty to always reimburse the central bank. It is an absolutely essential pact of confidence.”