French central bank chief rejects Mélenchon's debt cancellation plan as illegal and dangerous

French central bank Governor Emmanuel Moulin called debt cancellation proposed by far-left leader Jean-Luc Mélenchon "illegal, dangerous and useless" on Friday, saying it violates EU treaties and would fuel inflation. Moulin argued the measure would force France out of the eurozone and increase borrowing costs, while failing to reduce the budget deficit since it would create a hole in the central bank's balance sheet. Mélenchon and his party rejected the criticism as misinformation. European Central Bank President Christine Lagarde separately called the proposal a "pure violation" of EU treaties. French ten-year bond yields reached their highest level since 2008 on Thursday.