French budget a credibility test for government, French central bank chief says

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WASHINGTON (Reuters) – The new French budget goes in the right direction but focus must now shift to implementation, and getting the deficit down as planned is a credibility test for the new government, French central bank chief Francois Villeroy de Galhau said on Friday.

“Bringing the deficit back to 5% next year is really the credibility threshold,” Villeroy told a news conference with French Finance Minister Antoine Armand in Washington.

“The government plan goes in the right direction,” Villeroy said. “Now what has been announced must be implemented next year.”

The government hopes to cut the public sector budget deficit to 5% of gross domestic product next year from an estimated 6.1% this year, among the highest in the European Union.