On October 9, 2024, François Villeroy de Galhau made a significant appeal for collective efforts to stabilize finances in France. The budget deficit has increased by 100 billion euros since January, raising concerns among economists and officials.

The Call for Consensus to Get Out of the Impasse

The governor of the Bank of France highlighted the importance of collective actions to alleviate the economic crisis. In his speech on Franceinfo, he compared the situation to a family living beyond its means, warning that if efforts are not made, France will continue to fall into the 'infernal spiral of debt.' With the preparation of the 2025 budget and the extensive tax burden and protests from SMEs and local authorities, the Bank of France insists on the necessity of shared efforts.

Reform Paths and Implications for the Future

François Villeroy de Galhau emphasized the need to cut expenses and slightly increase revenues to balance the finances. He proposes smart budget cuts and stricter management of public resources to avoid excessive tax burdens on citizens. However, his call for shared effort is likely to face resistance from policymakers and economic players, potentially leading to more drastic measures in the future.

Conclusion

The governor's call highlights the urgency of collective efforts by economic actors to balance public finances. However, significant political and economic obstacles could complicate the reform process.

The speech by the head of the Bank of France underscored the urgency of joint efforts by economic actors to stabilize public finances. However, the path to reforms may face considerable political and economic hurdles.