Banque de France governor tells government to take “serious care” of public spending

We finally need to take care of public spending “seriously” to reduce the deficit in 2023, believes Bank of France Governor Francois Villeroy de Galhau, who condemned successive governments’ unfulfilled commitments.

Francois Villeroy de Galhou, governor of the Bank of France, predicted on Thursday March 28 that the reduction in deficits in 2023 would make it necessary to “finally deal seriously” with public spending without “holding back” “governments” after “fifteen years” (. ..) their commitments”.

“For fifteen years now, our country and its successive governments have not followed through on their multi-year commitments to restore public accounts,” he said during a speech at Paris Dauphin University.

The deterioration of the deficit in 2023, which reached 5.5% of GDP instead of the 4.9% initially planned by the government, “of course does not mean the bankruptcy of France”, he tried to assure, but it calls for “inevitable”. .

“Efforts of Prioritization and Efficiency”

François Villeroy de Galhou insisted that we must finally take care of public spending “seriously”. And this, “before taking any potentially necessary decisions on taxation”, he said in reference to recent proposals to tax companies’ “superprofits” or carry out targeted tax increases.

The governor of the Bank of France elaborated, “It is not time to make a general reduction in timeliness and costs, but to achieve this general stability in volume.” “This requires priority and efficiency, a fair and shared effort by everyone: the state, but also local authorities and social benefits.”

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