France's Budget Strategy Amid Political Turmoil

Francois Villeroy de Galhau, head of the Bank of France and ECB member, emphasized the need for France to clarify its budget strategy amid domestic political uncertainty. His comments follow underperformance in French bonds and stocks after President Emmanuel Macron's call for a snap parliamentary election.

Bank of France head and European Central Bank (ECB) member Francois Villeroy de Galhau said on Wednesday that while he could not comment specifically on France's domestic political situation, the country needed to clarify its budget strategy. French bonds and stocks have underperformed other European markets this week after President Emmanuel Macron called for a snap parliamentary election.

"I think that it is important that, whatever is the result of this vote, France can quickly clarify its economic strategy and in particular its budget strategy," he told Radio Classique. "What we have said in our outlook, is that inflation in France should go below 2% from the start of next year, and could even come in on average at 1.7% in 2025," added Villeroy.

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