The Central Bank of France has urged action to prevent the deepening of France’s fiscal deficit.
François Villeroy de Galhau, the governor of the Bank of France, urged on June 18 to avoid worsening fiscal deficits as investors worry about France’s fiscal outlook after the sale of French assets.
Before France is expected to be put on the European Commission’s list for excessive deficit procedures, Villeroy de Galhau said in a meeting with economists, “We must do our utmost for the respect, consideration, and truth that our fellow citizens expect. Respecting them means above all listening humbly to their questions, their expectations, and their criticisms” He added, “It also means recognizing the demands of reality and no longer increasing the serious deficit that we cannot finance well, and quickly clarifying our economic strategy, especially the budget strategy proposed for our country.”
Villeroy de Galhau has already emphasized that the next French government should quickly establish a financial plan.
On the other hand, the current administration has already deviated from its plan to reduce the fiscal deficit earlier this year.
President Emmanuel Macron’s decision to rush parliamentary elections at the end of June has surprised the market by opening the door to a far-right government or at least a divided parliament that could struggle to pass economic and fiscal laws.
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