French Budget Must Prove Government's Credibility, Says Central Bank President

Francois Villeroy de Galhau, the Governor of the Bank of France, emphasized the importance of the new French government's budget in establishing credibility, particularly in terms of reducing the deficit. During a press conference in Washington today with French Finance Minister Antoine Armand, Villeroy stated that the government's plan to reduce the public sector budget deficit from an estimated 6.1% this year to 5% of gross domestic product (GDP) next year is a critical benchmark for the country's financial reliability.

The central bank governor acknowledged that the new budget is a step in the right direction but stressed the necessity for the government to maintain its implementation. According to Villeroy, the targeted 5% deficit for the coming year is seen as a "credibility threshold," and achieving this goal is vital for sustaining confidence in the government's fiscal policy.

The planned reduction in the deficit is part of France's efforts to align its budget figures with European Union norms, as the current deficit level is among the highest within the bloc. The government's actions in the coming year will be closely monitored to ensure the effective implementation of the announced measures to achieve the desired financial outcomes.