PARIS (Reuters) -French Prime Minister Francois Bayrou's budget tightening plan announced this week goes in the right direction although some details needed to clarified, French central bank governor
French Central Bank Governor Supports Budget Plan with Reservations
Analysis of the Proposed Budget Plan
PARIS (Reuters) -French Prime Minister Francois Bayrou's budget tightening plan announced this week goes in the right direction although some details needed to clarified, French central bank governor Francois Villeroy de Galhau said on Thursday.
Details of the Budget Tightening
Bayrou proposed on Tuesday scrapping two public holidays and freezing most public spending as part of a 43.8 billion euro ($51 billion) budget squeeze to get the deficit down next year.
Criticism from Opposition Parties
In reaction, Villeroy said that some savings measures remained to be documented in detail and debated in parliament, where opposition parties were quick to criticize the package.
Governor's Remarks on Public Debt
"Subject to this important reservation, the general direction seems to be moving in the right direction to finally bring our public debt under control, while preserving growth by reducing budgetary uncertainty and pursuing certain fundamental reforms," Villeroy told journalists.
(Reporting by Leigh Thomas;Editing by Sudip Kar-Gupta)
