Finance: The Governor Of The Bank Of France Calls For A National Effort!

This Wednesday, October 9, 2024, François Villeroy de Galhau, governor of the Bank of France, made a direct appeal: “It’s time for everyone to make efforts.” In a context where public finances are slipping, with a deficit that has widened by 100 billion euros since January, this statement leaves no room for ambiguity. Every economic player, from citizens to businesses to local authorities, must accept sacrifices to avoid a budgetary collapse.

The call for consensus to get out of the impasse

The governor of the Bank of France, François Villeroy de Galhau, forcefully expressed the need for collective action in response to France’s economic situation. During his intervention on Franceinfo, he compared the state to a “family living beyond its means” and warned that if everyone did not make efforts, France would continue to sink into an “infernal spiral of debt,” with a record level of 3,228 billion euros. His message is clear: we must stop “playing around” with cost-saving measures and stop rejecting measures when they do not directly concern each one’s interests. At the same time, Villeroy de Galhau warns against collective complacency which could accelerate the degradation of public finances.

This declaration comes as the government prepares the 2025 budget, already under scrutiny. Amid 20 billion euro tax increases, denounced by several political figures including Gérald Darmanin, and the non-indexation of pensions to inflation planned for the first half of 2025, tensions are high. Moreover, SMEs and local authorities are protesting against the upcoming budget cuts, as they consider the measures unfair and ineffective. Despite these objections, the Bank of France insists: it is essential that the effort is shared to prevent a worsening of the crisis.

The reform paths and implications for the future

While the first part of François Villeroy de Galhau’s speech focuses on the urgency of savings, the next addresses concrete ways to straighten the public accounts. “We need to reduce spending and slightly increase revenue,” he specified. Thus, he emphasizes the necessity of rebalancing the finances without overly burdening taxpayers. For him, the objective is to identify smart budget cuts and find ways to increase income, notably through better tax collection and more rigorous management of public resources.

The seriousness of the economic situation is shown by the budget deficit figures, but recovery prospects remain unclear. Although Villeroy de Galhau calls for a “shared effort,” the implementation of these reforms will likely face significant resistance from both policymakers and economic actors. The risk, according to the governor, is that failing to take measures now could lead to even more drastic decisions in the near future, with potentially severe economic consequences for future generations.

François Villeroy de Galhau’s call highlights the urgency of collective action to stabilize public finances. With a sharply increasing deficit, he stresses the necessity of sharing the efforts among all economic actors. The implementation of effective budgetary reforms is essential to avoid a more severe crisis in the future. However, political and economic resistances could complicate this approach. In this context, some might be tempted to explore opportunities offered by the crypto sector. Indeed, Investing in cryptos can offer diversification prospects, but it is crucial to remain vigilant in the face of significant fluctuations and numerous frauds present in this still young and evolving market.