French political gridlock raises eurozone contagion risk, ECB intervention dilemma

French economist Shahin Vallée warns that France's inability to deliver spending cuts due to political gridlock could spread stress to the rest of the eurozone, forcing ECB action. The interview highlights the dilemma: ECB intervention may be needed but is constrained by political factors, including debt plans from Le Pen and Mélenchon. This underscores rising fiscal and political risk in the eurozone's second-largest economy.

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