The bar is high!

What happened: Former ECB President Mario Draghi said the bar is high for the ECB to step in and contain the widening spread on French government bonds, noting such instruments can be used when a country is under Excessive Deficit Procedure. Key numbers: France growth forecast 0.4% this year; budget deficit exceeding 5% of GDP. Why it matters: France is the only advanced economy with a downward growth revision in the IMF's latest World Economic Outlook, and with elections approaching the author expects bond markets to keep testing the ECB by pushing French spreads wider.

Former ECB President Mario Draghi said the bar is high for the ECB to step in and contain the widening spread on French government bonds, noting such instruments can be used when a country is under Excessive Deficit Procedure.

France is the only advanced economy with a downward growth revision in the IMF's latest World Economic Outlook, and with elections approaching the author expects bond markets to keep testing the ECB by pushing French spreads wider.