Budget 2026: A Special Law "Would Lead to a Deficit Significantly Higher Than Desirable," According to the Governor of the Bank of France

The Governor of the Bank of France warns against an increased deficit without savings measures in a special law for the 2026 budget.

SUMMARY

François Villeroy de Galhau, Governor of the Bank of France, warned that a special law for the 2026 budget would lead to a deficit significantly higher than desirable due to the absence of savings measures. He calls for rigorous management of public finances to avoid deterioration of accounts and preserve economic stability.

KEY HIGHLIGHTS

A special law for the 2026 budget could worsen the public deficit.
Lack of savings measures in this law is a key risk factor.
The governor stresses the need for rigorous public finance management.
Uncertain economic context requires caution and spending control.

CORE SUBJECT

Warning on the 2026 Budget Deficit

A special law "would lead us to a deficit significantly higher than what is desirable," notably because it does not include "any savings measures," said the Governor of the Bank of France, François Villeroy de Galhau, on France Inter, Friday, December 19.

The adoption of such a special budget law for 2026 could therefore worsen France's financial situation, according to his remarks. The governor emphasizes the need to include savings measures to control the public deficit and avoid excessive deterioration of public accounts.

François Villeroy de Galhau highlights the importance of rigorous public finance management in an uncertain economic context, in order to preserve economic stability and market confidence.

This statement comes as the government debates the modalities of the 2026 budget, with tensions over choices between supporting growth and controlling public spending.

KEYWORDS

2026 budget public deficit special law Bank of France François Villeroy de Galhau savings measures public finances

MENTIONED ENTITIES 3

François Villeroy de Galhau

👤 Person_Male

Governor of the Bank of France

Bank of France

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French central bank

France Inter

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French radio station where the interview took place

NOTABLE QUOTES 1

"A special law "would lead us to a deficit significantly higher than what is desirable," notably because it does not include "any savings measures.""

— François Villeroy de Galhau 2025-12-19 warning

Context: Interview on France Inter regarding the 2026 budget