Bank of France Chief Laments Minimal Effort to Cut Deficit (1)

Bank of France Governor Francois Villeroy de Galhau said the government and parliament could have done more to pare the deficit in a budget compromise adopted on Friday.

Prime Minister Sebastien Lecornu survived no-confidence votes on Friday on the revenue chapter of a finance bill that foresees cutting the gap to 5% of economic output in 2026, while the government had initially aimed for 4.7%.

The premier made a series of concessions — principally to center-left Socialists — to preserve funding for welfare and cap taxes for households. Villeroy had previously warned that anything above 5% would put France in ...