Still, the central bank said 1.5 percent growth was a level that would help the country close a gap with euro-area peers. It expects consumers to drive growth next year thanks to a rise in spending power, supported by tax cuts.
“French growth should remain above its average of recent years: That is still a rather favorable economic situation,” Villeroy said.
The central bank’s forecasts do not take into account Macron’s planned tax cuts. But it said the measures could also support consumer spending next year.
In the Les Echos interview, Villeroy also commented on the European Central Bank’s decision to end its net asset purchases. He said a “gradual normalization” of policy is justified by euro-area figures, but the central bank remains flexible in uncertain times and has powerful instruments available.
Countries on the periphery of the EU got the message loud and clear that the EU has one set of rules for large countries and quite another for small countries when depositors were bailed-in during Cyprus’s troubles but were rescued when Banca di Monte Paschi di Siena was going under.Click HERE to subscribe to Fuller Treacy Money Back to top