French President Emmanuel Macron called for a strategic review of the European Central Bank's monetary policy framework during a high-level meeting in Paris, emphasizing the need for greater flexibility in response to persistent inflation and regional economic disparities. The remarks come as eurozone growth slows and inflation remains above target.
- ECB interest rate at 4.5% since July 2024
- Eurozone inflation at 2.8% in November 2025
- Q3 2025 eurozone GDP growth at 0.1%
- Italy and Spain in technical recession
- French 2026 public investment: €120 billion
- 18% increase in public borrowing costs due to rates
French President Emmanuel Macron has publicly urged the European Central Bank to reconsider its current monetary policy stance, warning that rigid adherence to inflation targets may be undermining broader economic stability. Speaking after a bilateral meeting with Ukrainian President Volodymyr Zelenskiy at the Élysée Palace on December 1, 2025, Macron highlighted mounting concerns over divergent economic performance across EU member states, particularly in Southern and Eastern Europe. The ECB’s benchmark interest rate remains at 4.5%, the highest level since 2001, and has been maintained since July 2024 despite inflation cooling to 2.8% in November 2025—still above the central bank’s 2% target. Meanwhile, GDP growth in the eurozone stagnated at 0.1% in the third quarter of 2025, with Italy and Spain recording negative output, while Germany’s economy contracted by 0.3% quarter-on-quarter. Macron’s call for policy reassessment reflects growing pressure from several eurozone governments, particularly France and Italy, which argue that continued high borrowing costs are stifling investment and public spending needed for green transitions and defense modernization. The French government has allocated €120 billion in public investment for 2026, but rising interest rates have increased the cost of financing such programs by an estimated 18% compared to early 2024 levels. Financial markets reacted swiftly, with the euro dropping 0.6% against the dollar and German 10-year bond yields rising 12 basis points to 2.45%, signaling expectations of a potential shift in ECB policy. Markets are now pricing in a 60% chance of a rate cut by the ECB’s June 2026 meeting, up from 35% in early December 2025.