BRUSSELS (dpa-AFX) - Bringing the budget deficit below the 3 percent target set in the Maastricht treaty must be the top priority for France, Bank of France Governor and European Central Bank policymaker Francois Villeroy de Galhau said Tuesday.
In an interview to the Europe 1 radio, Villeroy said it is imperative to bring the budget deficit for 2017 below 3 percent. The central banker forecast 1.4 percent growth for France this year.
France should meet its deficit goals, the policymaker urged, warning that failure to do so would affect the country's credibility in Europe. Paris could loose its standing among its European partners if it continues to miss budget goals, he said.
Public finances is a hot topic in France, where the race to be the next President is heating up. The country is set to hold is Presidential election in April and May next year.
Far-right candidates have said they would not meet the 3 percent goal, while some have promised more tax cuts.
Lowering taxes is a very legitimate desire, Villeroy said, adding that spending must be reduced simultaneously. He also sought implementation of budget reforms that will also stimulate growth.
Copyright RTT News/dpa-AFX