The French Central Bank calls for bold steps to treat chronic disease

The Governor of the French Central Bank, François Villeroy de Gallo, urged the government to be as ambitious as possible in reducing budget items to treat the “chronic disease” afflicting the country’s public finances and restore economic confidence after months of political turmoil.

The Governor of the French Central Bank continued in a speech on the occasion of the New Year in the presence of Finance Minister Eric Lombard, saying that debt levels in France have exceeded several “critical thresholds,” and that its deficit this year will be the largest in the euro zone, according to what Bloomberg News reported.

Villeroy also warned that French asset sales amid political and financial uncertainty had pushed lending costs “dangerously” higher than those of Germany, and that the cost of financing public debt would exceed the education budget.

Villeroy explained, “The seriousness of our financial situation has at least one advantage: our country no longer has to choose between reforming financial conditions or economic growth, as the financial and tax uncertainty that burdens companies and families has now been reduced.” A condition for confidence and thus growth.”

France is facing an extended political crisis over its 2025 financial plans, which led to the collapse of the government last month and left the country relying on emergency legislation to continue functioning. (Sky News)