France's Debt Reduction Strategy Involves Significant Spending Cuts

The French central bank chief, Francois Villeroy de Galhau, emphasized the need for spending cuts to drive France's debt reduction. He also mentioned that higher taxes, particularly on wealthy individuals and large companies, would be necessary, suggesting a balance of 75% from savings and 25% from increased taxes.

France's central bank chief Francois Villeroy de Galhau has outlined a strategy to curb the country's debt, stressing the importance of spending cuts.

During an interview with BFM TV, Villeroy proposed that 75% of the debt reduction should come from savings, while the remaining 25% should be sourced from higher taxes.

He pointed out that these tax increases should specifically target wealthy taxpayers and large corporations to achieve a more balanced fiscal policy.

(With inputs from agencies.)