ECB’s Villeroy: Inflation “Well Under Control”

2 September 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that inflation was still “well under control” and that the economy was relatively resilient.

In a statement about inflation, growth and fiscal policy made public on the website of the Banque de France, which he heads, Villeroy said that there were two positive aspects stemming from the latest data.

The first one was that French and Eurozone “inflation remains well under control as of the end of August”, according to Villeroy, who said that this allowed “for favorable interest rates and supports the recovery of purchasing power.”

Secondly, French GDP was expected to reach “at least” the 0.6% growth projected by the Banque de France in 2025 given the confirmation of Q2 growth of 0.3%, he said.

“With this relative resilience, now is more than ever the time to tackle the number one problem facing the French economy: our excessively high deficits and debt”, he said. “Continuing to ignore this would only perpetuate uncertainty for households and businesses and curb our fiscal capacity for the future.”

France should not increase public spending faster than inflation each year, including 2026, to achieve the 3% deficit target in 2029, he said.

The solution was not easy, but “the longer our country delays tackling it, the more painful the adjustment will be”, he said.