France Faces 5-Year Plan to Tackle Budget Deficit, Says Bank of France Chief

Bank of France head Francois Villeroy de Galhau suggests it is unrealistic for France to reduce its deficit below 3% of GDP within three years. However, he believes it is achievable within five years. The country's 2024 budget deficit stands at 5.1%, above the EU's 3% limit.

It is not realistic for France to bring down its deficit below the level of 3% of its GDP within three years but it could be possible to do so within five years with the right actions, said Bank of France head Francois Villeroy de Galhau on Tuesday.

"Three years is not realistic, not economically or with regards to growth. But to do it in five years is possible," Villeroy, who is also a policymaker for the European Central Bank, told France 2 TV.

Earlier this week, French finance minister Antoine Armand said the country's budget deficit was at one of its worst levels in history. The government currently expects a 2024 budget deficit of 5.1% of GDP - above the European Union's limit of 3%.

(With inputs from agencies.)