France Deficit Should Be Within 4.8% GDP in 2026, Villeroy Says

Bank of France Governor Francois Villeroy de Galhau said the next government must overcome political infighting and continue to target a significant reduction in the budget deficit next year.

Outgoing Prime Minister Sebastien Lecornu opened the door to smaller cuts in 2026 as part of a deal on economic policy that he says will allow President Emmanuel Macron to appoint a new premier by Friday evening.

Lecornu said that France should still keep the deficit within 5% of economic output, but that’s wider than the 4.7% he previously targeted and the 4.6% goal of his predecessor Francois Bayrou.

Francois Villeroy de Galhau

Photographer: Benjamin Girette/Bloomberg