Villeroy is speaking more in his capacity as French central bank governor here, in a letter to French president Macron
- France should avoid raising or cutting taxes
- France needs stable fiscal policy over several years
- It would be wise to keep public debt capped at 120% of GDP
- Otherwise, investor confidence will fall
- That would risk France slipping more towards Southern Europe
Villeroy sort of overstepping the bounds as he is now offering the government fiscal advice but then again, this is the time where both fiscal and monetary policies need to work hand in hand more than ever.
