The Governor of the Bank of France is concerned about the “uncertainty shock” linked to the political context and calls for not “increasing deficits”

François Villeroy de Galhau also called for companies not to increase their burden, a few days after the New Popular Front came out on top in the legislative elections.

“Not everything will be possible right away”warned the governor of the Bank of France François Villeroy de Galhau on franceinfo on Thursday July 11, at a time when the economic program of the New Popular Front, which came out on top in the early legislative elections, is accused of being too expensive.

“I note that if our fellow citizens have sent a strong message in this election, it is their concern to be better respected, better considered and better respected, it is also to tell them the truth”he said. “We must tell the truth and recognize the demands of reality”repeated François Villeroy de Galhau while reaffirming the principle of“independence” policy of the Bank of France. He highlighted two “golden rules” : not “digging the deficits” And “to become heavier” business charges. “Our companies cannot be burdened by excessive wage costs, including the minimum wage, and by excessively high taxes. This would be very bad for employment right away and very bad for purchasing power in the long term.”assured the head of the Bank of France.

“I believe that if we make choices, we must not increase the deficits in any way because they are already among the largest in Europe.”he hammered home. In mid-June, in the midst of the campaign for the legislative elections, the European Union had pinned France for its excessive public deficits. A situation that worries the governor all the more since France’s borrowing rates have increased. The deficits “weigh and cost us more and more to finance and they weigh on our sovereignty”the central banker said.

Since the dissolution of the National Assembly on the evening of June 9, François Villeroy de Galhau has pointed out a “uncertainty shock” unprecedented linked to the political context which may prove to be “very negative for growth and employment”Conducted among 8,500 entrepreneurs between June 26 and July 3, the Banque de France study highlights the concerns of business leaders who emphasize “the wait-and-see attitude of their customers who would prefer to save rather than consume.” A “uncertainty” strengthened at the end of the second round of the legislative elections since no clear majority emerged in the new National Assembly.