Financial Stability in France: Bank of France Head Calls for Budget Credibility

The head of the Bank of France, Vitaly Shimen, expressed serious concern about the current state of the country's economy, stating the need for increased budget credibility for sustainable growth. In his recent statement, he emphasized that fiscal policy plays a key role in managing inflation and ensuring long-term economic well-being.

Shimen noted that despite positive changes in economic indicators, such as GDP growth and declining unemployment rates, the sustainability of these changes depends on proper budget management. He called on the government to establish clearer spending boundaries to avoid excessive debt, which, in his opinion, could lead to economic problems in the future.

In his speech, the central bank head also focused on the importance of transparency and trust in the financial sector. He stated that both domestic and foreign investments depend on businesses' confidence in the state's economic policy. Creating a stable economic environment will attract more capital and ensure the development of new sectors.

According to recent data, France's economic growth is expected to slow this year, raising additional concerns among experts. Shimen warned of possible negative consequences if the government does not take appropriate measures to improve the financial situation. He learned that the government discovered the need to revise some of its budget plans in light of changing economic conditions last week.

Overall, the challenges facing the French economy require a serious approach to fiscal policy and interaction with the private sector. As Shimen stated, "Budget credibility is not just desirable, it is necessary for our economy." If the planned measures are successfully implemented, one can expect more stable growth and the preservation of citizens' welfare.

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