The Governor of the Bank of France, François Villeroy de Galhau, warned in an interview with Le Figaro about the growing burden of public debt and pension funding on future generations. According to him, France is gradually shifting the burden of debt and pensions onto its children due to deficits accumulated over several years.
The governor believes that budgetary choices made in recent decades have primarily favored spending on pensions and healthcare, often financed by debt. He warns of the risk of a model that has become increasingly unsustainable in the long term, as the population ages and public spending continues to rise.
The Bank of France calls for a rapid reduction in deficits.
François Villeroy de Galhau is advocating for a rapid reduction of the public deficit to avoid a lasting deterioration of France's financial situation. He recently stated that a deficit exceeding 5% of GDP would place the country "in danger," particularly in the eyes of financial markets and rating agencies.
In several recent public statements, the Governor of the Bank of France has also emphasized the significant role of pensions in the evolution of public spending. According to him, their increase explains a substantial portion of the rise in government expenditures over the past twenty years.
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