“Everyone must stop playing havoc with savings options,” denounces the governor of the Bank of France

The governor of the Bank of France, François Villeroy de Galhau, was the guest of franceinfo this Wednesday.

“Our country is in the situation of a family living beyond its means“, judged the governor of the Bank of France, François Villeroy de Galhau, Wednesday October 9 on franceinfo.

“The draft budget is going in the right direction“, the country must”reduce expenses and increase income“, he continued. François Villeroy de Galhau reminds on franceinfo that the increase in spending leads to an increase in the deficit, and therefore in the debt: a mechanism which “weakens France“, and that it was necessary “absolutely reverse“.

France must therefore learn to “control your expenses” recommends the governor of the Bank of France, who compares the country to its European neighbors, since “we have the same social model, the same public service model. […] but it costs us the equivalent of 260 billion euros more than our neighbors“. A “efficiency gap“that needs to be treated “consistently“.”Everyone tends to have savings ideas from others and refuse them at home: everyone needs to stop playing havoc with all the savings options that are on the table“, underlines the governor of the Bank of France. The risk is that in the end, “we will make zero savings and we will continue this infernal spiral of debt“, concludes François Villeroy de Galhau.

François Villeroy de Galhau also affirmed that “victory against inflation is in sight“.”We have gone down to 1.5% inflation for the entire euro zone, as for France, and that means two good news: purchasing power is returning and then it means that we are going to continue the reduction in interest rates that we started since June“, he insisted.

A decision will be made next week, but “a drop“interest rates are”very likely“, predicts the governor of the Bank of France and “it won’t be the last“It still warns of the risk that there is.”ups and downs“coming in the coming months, but estimates that”inflation will be at 2% in France at the start of next year and in Europe during next year“.

The fall in interest rates has several positive consequences on the economy, in particular on mortgage rates which have also started to fall again. François Villeroy de Galhau specifies that the borrowing volumes of the French “have become significant again since July“.”The banks are in a position to offer credit, and if we have projects, we must take advantage of them“, advises the governor of the Bank of France.