Angel Ubide told Reuters that market pressure should force Paris to rein in spending before next year's presidential election, and that France is not yet a systemic risk to Europe.
France no longer has room for mistakes in repairing its public finances, senior Citadel executive Angel Ubide told Reuters in an interview published Wednesday. He said pressure from bond markets should focus minds in Paris on spending before next year's presidential election.
Ubide is head of economic research for fixed income and macro at Citadel, which Reuters said manages $76 billion. France's borrowing costs have risen in the global bond selloff, and investors have sold the euro on concern that fragile French finances could spill into the rest of Europe.
He said France does not pose a systemic risk to Europe yet. If France became a systemic problem, he said, that would be a systemic problem for Europe, and he hoped the discussion would not reach that point.
Ubide said parliamentary elections also need to produce a majority able to restrain public finances. He called the market signal useful because it shows there is no room for mistakes.
The interview did not announce a new French budget measure. Reuters framed the comments against a wider euro-zone concern that French turbulence could spread.
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- Angel Ubide said market pressure is sending a clear signal that France has no room for mistakes.