A Step Towards Economic Reason

Francois Villeroy de Galhau, a key figure in the European Central Bank (ECB) Governing Council and Governor of the Bank of France, has cautiously welcomed the United States' decision to halt tariff increases for 90 days. Describing the move as "less bad" and "a start of economic reason," Villeroy highlighted the complexities of the current economic landscape during his appearance on France Inter.

Challenges Ahead

Despite this development, Villeroy pointed out two significant concerns in Washington's economic strategy: unpredictability and protectionism. He argued that these elements not only threaten confidence and growth in the US but also have a more detrimental impact on American consumers and the economy than on Europe's.

France's Economic Outlook

Addressing France's economic situation, Villeroy acknowledged a slowdown but reassured there are no signs of a recession. He also cautioned against overemphasizing the country's deficit figures, urging a broader perspective in light of global economic shifts.