Warning on Economy and Budget Deficit from Bank of France Governor

Bank of France Governor Emmanuel Moulin stated that the current state of the economy is not satisfactory and called on the government and parliament to take urgent steps against the budget deficit problem.

Public Finance and Budget Deficit Problem

Bank of France Governor Emmanuel Moulin evaluated the economic situation in the country in statements made to RTL radio. Moulin stated that France is not in immediate danger, but the picture is concerning due to serious issues that need to be resolved, such as public finances and the budget deficit.

Downward Revision in Growth Forecasts

While the Eurozone economy has caught a stable growth trend, France continues to lag behind this general picture. France's National Institute of Statistics and Economic Studies (Insee) lowered its 2026 growth expectation from 0.7 percent to 0.4 percent due to weak consumer spending and declining investments.

European Central Bank Decisions and Regional Situation

Moulin's warnings came right after the European Central Bank raised interest rates for the second time since the outbreak of the Iran war. The ECB also revised its inflation expectations upward and reported that the broader European economy has shown surprising resilience despite the conflicts.