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The Governor of the Central Bank of France warns that a budget deficit exceeding 5% of GDP in 2026 will place the country in a risk zone for international creditors.

Matei Gaginsky
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14 January 2026, 10:53
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International
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Francois Villeroy de Galhau, the governor of the Central Bank of France, stated that the country will enter a zone of economic danger if the budget deficit exceeds 5% of GDP in 2026. He emphasized that such a situation would raise concerns from international creditors. Although political uncertainties affect economic growth, Villeroy mentioned that the economy of France, the second largest in the eurozone, shows signs of resilience, with an estimated GDP growth of 0.9% for 2025.

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Guvernatorul Băncii Franței anunță că Franța riscă zona periculoasă dacă deficitul depășește 5% în 2026
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Financial Intelligence
Guvernatorul Băncii Centrale a Franţei avertizează asupra efectelor deficitului bugetar ridicat în 2026

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NEWS ON THE SAME TOPICS

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The International Monetary Fund warns that France's public debt could reach 122% of GDP without additional fiscal measures.
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France lowers its economic forecast and announces that the deficit target for 2026 can no longer be met
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France’s private debt reaches 134.2% of GDP in an economy that also has public debt of 117.6%
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IMF chief warns France to reduce its deficit to regain the markets’ confidence
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France’s debt is set to rise to 121.7% of GDP in 2027, while Bruegel sees limited scope for ECB intervention
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IMF warns that global debt will soon exceed 100% of GDP
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France budget deficit GDP Francois Villeroy de Galhau

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