> Now, if a and b are already float, then it's equivalent.

Not necessarily! Floating-point contraction is allowable essentially within statements but not across them. By assigning the result of a * b into a value, you prohibit contraction from being able to contract with the addition into an FMA.

In practice, every compiler has fast-math flags which says stuff it and allows all of these optimizations to occur across statements and even across inline boundaries.

(Then there's also the issue of FLT_EVAL_METHOD, another area where what the standard says and what compilers actually do are fairly diametrically opposed.)

The first mention of contraction in the standard (I'm looking at N3220 draft that I have handy) is:

A floating expression may be contracted, that is, evaluated as though it were a single opera- tion, thereby omitting rounding errors implied by the source code and the expression evalua- tion method.86) The FP_CONTRACT pragma in <math.h> provides a way to disallow contracted expressions. Otherwise, whether and how expressions are contracted is implementation-defined.

If you're making a language that generates C, it's probably a good idea to pin down which C compilers are supported, and control the options passed to them. Then you can more or less maintain the upper hand on issues like this.

It seems to me that either you want to allow for contraction everywhere, or not all. Allowing it only sometimes is worst of both worlds.