Bank of France Warns Presidential Contenders on Deficit Promises


Francois Villeroy de Galhau, governor of the Bank of France

Photographer: Marlene Awaad/Bloomberg

Bank of France Governor Francois Villeroy de Galhau warned the nation’s presidential candidates that they need to meet deficit-cutting commitments or risk losing credibility with other European Union governments.

“France has promised to go below 3 percent in 2017 and all our European partners are waiting or us. It’s the cornerstone of our credibility in Europe,” Villeroy de Galhau said Tuesday on Europe 1 radio. “The condition for us being listened to is for us to be believed.”

As France’s 2017 presidential race heats up, candidates including Nicolas Sarkozy and Francois Fillon have indicated they would allow the budget deficit to rise if they win office. President Francois Hollande’s government currently plans to reduce the shortfall to 2.7 percent of gross domestic product next year. Finance Minister Michel Sapin presents an update of the fiscal outlook later today.

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