French central bank governor: Markets may be overreacting to the fiscal situation; budget bill likely to pass.

Bank of France Governor Emmanuel Moulin said investors may be overreacting to the fiscal challenges facing France and that there is a strong likelihood the budget will pass parliament. Moulin said the government could invoke Article 49.3 of the constitution to force the budget through in the face of a no-confidence vote, or after 70 days of debate the executive could use a decree known as an Ordonnance to bring the draft originally submitted to parliament into effect. "We will very likely have a budget, and the market's reaction to the French political situation is perhaps somewhat excessive," Moulin said Monday at the World In Progress forum in Barcelona.