ECB’s Villeroy: US-EU Trade Agreement ‘Cannot Be Considered Positive’ for Europe

26 August 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that the US-EU trade agreements was negative for Europe and that tariffs were still ‘bad news’.

In an interview with French regional daily Sud Ouest, Villeroy, who heads the Banque de France, said that tariffs would bring higher inflation and lower growth to the US and would also have an impact on the European economy.

‘Europe has signed an agreement that may have been inevitable but cannot be considered positive’, he said.

European economy was ‘doing well’ when compared to other countries, according to Villeroy, who said that tariffs were still to be considered ‘bad news.’

Asked about France, Villeroy said that ‘[t]he solid good news is victory over inflation’, with domestic price growth now at 1%.

After registering slow growth in Q2, the French economy could grow at a similar rate in Q3, he said.

Related articles:

• ECB’s Villeroy: Tariffs Unlikely to Be Inflationary, But Strong Euro Is Disinflationary
• ECB’s Villeroy: Euro Strength Could Increase Risk of Undershooting
• ECB’s Villeroy: Underlying Inflation Outlook Unchanged Despite Middle East Conflict