François Villeroy de Galhau, Governor of the Banque de France, is concerned about the level of pre-crisis debt.
“
The debt is justified.
The crisis had to be responded to very vigorously.
Our problem is the 100% before Covid.
We have not taken advantage of better years to get out of debt,
”he lamented on Friday on the set of BFM Business.
The governor of the Banque de France believes that when we return to the level of pre-Covid activity, "
somewhere in 2022
", it will take a "
stabilization of public spending which is the highest in the world
".
To read also: "Heirs of a bottomless pit of debt, our generation is worried about the future"
French public debt, which flirted with 100% of GDP at the start of the year, has only worsened with the crisis and the many measures to support the economy.
Public debt should therefore exceed 120% of GDP in 2020.
European support
To support the revival of growth in France and in the rest of Europe, François Villeroy de Galhau considers it necessary to coordinate European action.
The governor of the Banque de France, in this regard, welcomed the decision taken Thursday by the board of governors of the European Central Bank to amplify and extend its emergency asset buyback program linked to the pandemic ( PEPP).
Increased by 500 billion euros, its total envelope now reaches 1,850 billion.
“
Our goal has been to make the right and important decisions.
We did it (...) We extended our exceptional programs because they are anti-crisis programs.
With the second wave, this crisis will last longer than expected.
Its duration is spread out.
Uncertainties remain strong in the short term.
We want to guarantee an agile and responsive eurosystem to adapt to these uncertainties,
”he explained.
“
We are helping all players to get through this crisis for as long as necessary.
We are building a financing bridge
”.
