Two days before the first round of the legislative elections, the governor of the Banque de France warned on Friday against an “overly optimistic” use of certain parameters of his economic models, a criticism addressed hollowly to the Nupes of Jean-Luc Mélenchon .
“The Banque de France is totally independent and does not have to make political comments,” said François Villeroy de Galhau on BFM Business. “But it is my duty to provide certain factual clarifications”, he added while Jean-Luc Mélenchon, the leader of the New Popular, Ecological and Social Union (Nupes) said he had calculated his program “from of the Banque de France model.
According to the calculations of the leader of rebellious France, the implementation of the Nupes program would thus generate 250 billion euros in additional public expenditure each year, and 267 billion euros in revenue for the State. The left alliance also says it is ready “not to respect certain European rules”.
The Banque de France does not quantify or validate “any program”
“The Banque de France has obviously not quantified, and even less validated, any candidate program” for the legislative elections, François Villeroy de Galhau underlined on Friday. “She warns in particular against the mechanical and overly optimistic use of so-called fiscal multipliers, taken out of context,” he continued.
“If France spent too much and had to borrow even more, it would inspire less confidence in its lenders and the cost of its debt could increase rapidly,” insisted the governor, citing the example of Italy in 2018, during the coming to power of a Eurosceptic coalition. “Contrary to what some are saying, in this case we should not count on the ECB to buy more French public debt,” assured François Villeroy de Galhau.
Professionals: cheapest online deals for limit your bank charges
No debt cancellation possible
“It could not cancel the French public debt either, because it is contrary to the founding treaty of the euro”, he specified. “We cannot both want to keep the euro and refuse the rules of the collective European game”, estimated the governor, who was speaking the day after the announcement by the European Central Bank of the start of normalization of its monetary policy.
“You can trust us” on economic management, on the contrary Jean-Luc Mélenchon said on Tuesday during the presentation of his “regulated” economy program. More than 170 economists have also signed on Thursday on the site of the Sunday newspaper a forum in support of the economic program of Nupes.
Reproduction forbidden.