French budget a credibility test for government, French central bank chief says

Published 10/25/2024, 04:44 PM
Updated 10/25/2024, 04:45 PM
© Reuters. FILE PHOTO: Francois Villeroy de Galhau, Governor of Banque de France, attends the Paris Europlace International Financial Forum in Paris, France, July 12, 2022. REUTERS/Benoit Tessier/File Photo

WASHINGTON (Reuters) - The new French budget goes in the right direction but focus must now shift to implementation, and getting the deficit down as planned is a credibility test for the new government, French central bank chief Francois Villeroy de Galhau said on Friday.

"Bringing the deficit back to 5% next year is really the credibility threshold," Villeroy told a news conference with French Finance Minister Antoine Armand in Washington.

© Reuters. FILE PHOTO: Francois Villeroy de Galhau, Governor of Banque de France, attends the Paris Europlace International Financial Forum in Paris, France, July 12, 2022. REUTERS/Benoit Tessier/File Photo

"The government plan goes in the right direction," Villeroy said. "Now what has been announced must be implemented next year."

The government hopes to cut the public sector budget deficit to 5% of gross domestic product next year from an estimated 6.1% this year, among the highest in the European Union.

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