Governor of the Bank of France Villeroy de Galhau: If the deficit is not controlled by 2026, France will face danger.

French Central Bank Governor Villeroy de Galhau has said that if the plans to repair public finances fail to keep next year's deficit within 5% of economic output, France could face a market backlash. "If the deficit exceeds 5%, France would clearly be in danger," Villeroy de Galhau said. "In my experience, the calm on the market's surface may suddenly be shattered." As the year draws to a close, the possibility of passing a complete budget in the French Parliament is slim. The government has warned that the approved fiscal measures so far can only reduce the deficit to 5.3% of economic output by 2026, slightly lower than this year's 5.4%. While Villeroy de Galhau has previously emphasized fiscal risks, his comments do indicate a certain level of concern over the slow progress as France continues to be closely watched by investors.