France could reach EU limit in five years, says Bank of France chief By Reuters

PARIS (Reuters) – It is not realistic for France to reduce its deficit to 3 percent of GDP within three years, but it could be possible within five years with the right course of action, Bank of France chief Francois said on Wednesday. Villeroy de Galhau.

“Three years is not realistic, either from an economic point of view or from a growth point of view. But it is possible to do it in five years,” said Villeroy, who is also a decision maker at the European Central Bank , for France 2 TV.

Earlier this week, French Finance Minister Antoine Armand said the country’s budget deficit was one of the worst in history. The government currently expects a budget deficit for 2024 of 5.1% of GDP – above the European Union limit of 3%.

Prime Minister Michel Barnier has hinted he would be open to raising taxes on the wealthy and some corporations as the country struggles to contain the deficit. Also expected are spending cuts, which Villeroy said in the interview he supported.

One of the first hurdles for France’s new government will be running a 2025 budget through an unruly parliament.