ECB’s Villeroy Urges Better Policy Coordination With Governments
- Bank of France chief says spending must not fuel inflation
- Villeroy declines to comment on ECB’s decision to raise rates
Francois Villeroy de Galhau
Photographer: Anna Rose Layden/BloombergThis article is for subscribers only.
Fiscal and monetary policy must be better coordinated in the euro area, with more discipline in government spending needed to avoid fueling inflation, according to Bank of France Governor Francois Villeroy de Galhau.
The European Central Bank policymaker said negotiations over new fiscal rules in the European Union are an opportunity for such a realignment and there should be “binding thresholds” for annual efforts to consolidate public finances.