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French central bank head says budget plan goes in right direction
Published by Global Banking & Finance Review®
Posted on July 17, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on July 17, 2025
1 min readLast updated: January 22, 2026
The French central bank head supports the budget plan aimed at controlling public debt, despite some reservations and opposition criticism.
PARIS (Reuters) -French Prime Minister Francois Bayrou's budget tightening plan announced this week goes in the right direction although some details needed to clarified, French central bank governor Francois Villeroy de Galhau said on Thursday.
Bayrou proposed on Tuesday scrapping two public holidays and freezing most public spending as part of a 43.8 billion euro ($51 billion) budget squeeze to get the deficit down next year.
In reaction, Villeroy said that some savings measures remained to be documented in detail and debated in parliament, where opposition parties were quick to criticize the package.
"Subject to this important reservation, the general direction seems to be moving in the right direction to finally bring our public debt under control, while preserving growth by reducing budgetary uncertainty and pursuing certain fundamental reforms," Villeroy told journalists.
(Reporting by Leigh Thomas;Editing by Sudip Kar-Gupta)
Monetary policy involves the management of a country's money supply and interest rates by its central bank to control inflation, stabilize currency, and achieve economic growth.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in Gross Domestic Product (GDP).
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