France’s central banker sounds alarm bell over public spending

PARIS: Growth in France’s public spending is reaching dangerous levels even when taking into account the exceptional stimulus plan to support the coronavirus-ravaged economy, the country’s central bank head said on Saturday. “There’s a real alert and it is time to regain control (over public spending)’’, central bank head Francois Villeroy de Galhau (pictured) told France Inter radio station. “We can’t afford everything all the time’’, he added, saying that France’s public spending has grown at a pace of 1 per cent in real terms over the last 10 years. France announced a 100 billion euro stimulus package last month. This equates to 4 per cent of gross domestic product, meaning France is ploughing proportionally more public cash into its economy than any other big European country. — Reuters