France Is in Danger if 2026 Deficit Not Contained, Villeroy Says

France could face a market backlash if plans to repair the public finances fail to bring its deficit within 5% of economic output next year, the country’s central bank chief said.

“Beyond a 5% deficit, France would clearly put itself in danger,” Francois Villeroy de Galhau said in an interview with Le Figaro. “The apparent calm of the markets can, in my experience, turn abruptly.”

France is heading into the end of the year with little chance of parliament adopting a full budget. The government has warned that portions of finance bills so far approved would only bring the deficit ...