Jean-Luc Mélenchon, leader of the French political party La France insoumise (LFI), has proposed a plan to freeze a portion of France’s public debt held by the European Central Bank (ECB) by converting it into perpetual debt with a zero interest rate. The proposal involves approximately 636 billion euros, or 18% of France's total debt, though the government disputes this figure, claiming it should be 884 billion euros, or 25% of the total. The idea was first introduced in 2022 and has been brought up again recently during LFI's summer universities, sparking debate as the country approaches its presidential election. Mélenchon argues that since central banks are controlled by their respective governments, this debt is effectively owed to France itself and should be considered invalid. The proposal could also apply to other European countries' debts held by the ECB. Legal experts in European law suggest that such a debt cancellation would likely violate the ECB’s independence and the rule against monetary financing of states, as outlined in Article 123 of the Treaty on the Functioning of the EU. This article prohibits governments from financing their budgets through the central bank. However, some experts note that the phrase “monetary financing” does not appear explicitly in the treaty text, which could leave room for the Court of Justice of the European Union to interpret the situation. This is different from the 2010s debt relief for Greece, which involved private creditors, not central banks. Mélenchon’s proposal would require changes to EU treaties, which would need unanimous agreement from all 27 EU member states and subsequent ratification by each country. However, this is considered extremely unlikely, with some analysts suggesting that the current treaties are effectively unchangeable. Critics, including former European commissioner Thierry Breton, argue that the plan may be a covert attempt to leave the eurozone. Supporters, however, claim the measure would give European countries more budgetary freedom to invest in areas like environmental transition. Some economists, including Jézabel Couppey-Soubeyran, suggest that the ECB could afford such a move, as central banks can function with negative equity. In 2021, a group of 150 economists from 13 European countries supported a similar idea. Opponents, including Nobel Prize-winning economist Philippe Aghion and economist Mathieu Plane, warn of potential risks such as loss of revenue from dividends, rising interest rates, and financial instability. They argue that the measure could trigger inflation or even a financial crisis. French officials, including Economy Minister Roland Lescure and Prime Minister Sébastien Lecornu, have strongly criticized the proposal, calling it a "pure swindle" or "delirious" speech that could lead to "total bankruptcy." The debate highlights the complex balance between fiscal autonomy and the rules that govern the European Union’s economic structure.