Governor of the Central Bank of France: France's deficit must be controlled within 4.8% of GDP by 2026.

Jin10 Data, October 25 - The President of the Central Bank of France, Villeroy, warned the lawmakers discussing the 2026 budget that the deficit must not exceed 4.8% of economic output to ensure that France can cope with the rising debt burden. The French National Assembly is currently debating a budget draft that aims for a GDP rise of 4.7%, but Prime Minister Le Maire has stated that the final target should be below 5%, and he is seeking a compromise with opposition lawmakers. In an interview with La Croix, Villeroy said, “It is absolutely necessary to keep the deficit below 3% from now until 2029, which means a maximum deficit of 4.8 next year.” He also mentioned that France is facing the risk of a “gradual suffocation” from debt, and additional deficit spending will not stimulate economic growth. According to calculations from the Central Bank of France, if the uncertainty of debt can be reduced and the household savings rate decreases by 1%, it would drive economic growth by 0.4%. However, Villeroy stated that this year the French economy is strong, with growth being “at least” as robust as the Central Bank's forecast of 0.7%.