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ECB’s Villeroy Downplays French Recession Concerns

Elena by Elena
02/02/2025
in News
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European Central Bank (ECB) Governing Council member and Bank of France Governor Francois Villeroy de Galhau stated on Monday that although the French economy is showing signs of slowing, he does not foresee a recession. Villeroy emphasized that French economic growth could rebound in 2026 and 2027, despite projections indicating a growth rate of 0% for the fourth quarter of 2024.

He also highlighted that France’s annual consumer inflation remained steady at 1.3% in December, unchanged from November.

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Villeroy reassured that France does not face a risk of being unable to finance itself, but added that the key concern is the cost of financing moving forward.

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Market Response

At the time of writing, the EUR/USD pair is up by 0.32%, trading at 1.0249.

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Related Topics:

  • Why Does the ECB Have a Negative Interest Rate?
  • Does the ECB Buy Green Bonds?
  • What Is the Main Financing Rate for ECB?
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