Central Banks
France’s Central Bank Chief Calls for Significant Deficit Cut
- Villeroy says gap near 5% GDP needed in 2025 for credibility
- Tax hikes likely required in next budget, Villeroy says
Bank of France Governor Francois Villeroy de Galhau
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Bank of France Governor Francois Villeroy de Galhau said a new government must still target significant deficit reduction next year, even though such efforts led to the downfall of the last government.
The new target should come close to 5% of economic output after 6.1% this year to rebuild investor confidence, Villeroy said on France 5 television on Thursday. He also suggested the government should consider temporary tax increases for businesses and wealthy individuals, similar to proposals put forward by former Prime Minister Michel Barnier, who was toppled in a no-confidence vote this month.