The European Central Bank (ECB) appears ready to push for a sharper rate cut—driven by an alarming debt crisis across the Eurozone, particularly in France, where a staggering deficit nearing 7% is spiraling out of control. According to Kamil Kovar, economist at Moody’s Analytics, the recent slowdown in services inflation could give the ECB’s dovish members the leverage to argue for a bold 50-basis-point cut. “The data clearly shifts the needle in this direction,” Kovar stated in a note to investors.

But the ECB faces steep challenges. As the U.S. Federal Reserve maintains relative higher rates, the ECB must work overtime to prevent capital outflows and stabilize markets through aggressive interventions. With Europe slipping deeper into recession and facing rising prices again, the pressure to cheapen credit grows, risking further erosion of fiscal discipline. The strategy? Bail out unsustainable public finances at all costs—a dangerous gamble in the fiat circus.