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ECB's Villeroy says France can limit budget deficit to 5.4%

Published by Global Banking & Finance Review

Posted on June 12, 2025

1 min read

· Last updated: January 23, 2026

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ECB's Villeroy says France can limit budget deficit to 5.4%
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PARIS (Reuters) -France's budget deficit will be 5.4% in 2025, in line with the Bank of France's target, even though the Bank has lowered the growth outlook for this year and the two following years,

France Aims to Keep Budget Deficit at 5.4% by 2025, Says Villeroy

PARIS (Reuters) -France's budget deficit will be 5.4% in 2025, in line with the Bank of France's target, even though the Bank has lowered the growth outlook for this year and the two following years, its head told franceinfo on Thursday.

Governor François Villeroy de Galhau is also a member of the European Central Bank.

After expanding 1.1% last year, the euro zone's second-biggest economy is set to grow only 0.6% this year, the Bank of France forecast on Wednesday, revising its estimate down from 0.7% projected three months ago.

(Reporting by Benoit Van Overstraeten; Editing by Barbara Lewis)

Key Takeaways

  • France aims for a 5.4% budget deficit by 2025.
  • The Bank of France has lowered its growth outlook.
  • Governor Villeroy de Galhau confirmed the target.
  • France's economy grew 1.1% last year.
  • Growth is forecasted at 0.6% for this year.

Frequently Asked Questions

What is France's budget deficit target for 2025?
France's budget deficit is projected to be 5.4% in 2025, aligning with the Bank of France's target.
How has the Bank of France adjusted its growth outlook?
The Bank of France has revised its growth outlook down from 0.7% to 0.6% for this year.
Who is François Villeroy de Galhau?
François Villeroy de Galhau is the Governor of the Bank of France and a member of the European Central Bank.
What was the growth rate of the euro zone's second-biggest economy last year?
The euro zone's second-biggest economy, France, expanded by 1.1% last year.
What is the significance of the budget deficit target?
The budget deficit target is significant as it reflects France's fiscal discipline and economic strategy amid revised growth forecasts.

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