Bank of France Governor Villeroy said that if the plan to repair public finances fails to keep next year's deficit within 5% of economic output, France may face a market rebound. “If the deficit exceeds 5%, France is clearly at risk,” Villeroy said. “Based on my experience, the apparent calm in the market may suddenly be broken.” As this year comes to an end, it is unlikely that the French parliament will pass the full budget. The government warned that part of the finance bill that has been approved so far will only reduce the deficit in 2026 to 5.3% of economic output, down from 5.4% this year. Although Villeroy has emphasized financial risks in the past, his remarks do show that he is concerned about the slow progress to a certain extent while France is still closely watched by investors.

Bank of France Governor Villeroy said that if the plan to repair public finances fails to keep next year's deficit within 5% of economic output, France may face a market rebound. “If the deficit exceeds 5%, France is clearly at risk,” Villeroy said. “Based on my experience, the apparent calm in the market may suddenly be broken.” As this year comes to an end, it is unlikely that the French parliament will pass the full budget. The government warned that part of the finance bill that has been approved so far will only reduce the deficit in 2026 to 5.3% of economic output, down from 5.4% this year. Although Villeroy has emphasized financial risks in the past, his remarks do show that he is concerned about the slow progress to a certain extent while France is still closely watched by investors.