ECB’s Villeroy: Europe Must Reduce Its Dependence on the US and China

24 January 2026

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Saturday that Europe needed to reduce its economic dependence on both the United States and China.

In an interview with French regional daily Ouest-France, Villeroy, who heads the Banque de France, said that French “economic activity is relatively resilient” and that the recession some had projected had failed to materialize.

Growth stood at 0.9% for 2025 and was expected at 1% for 2026, he said, and employment was “still holding up relatively well overall.” However, this was insufficient, he said.

“[P]olitical and international uncertainty is certainly a factor, and reforms are needed to boost growth in France and Europe,” he said. “A more solid achievement is the victory against inflation, which is now below 1%.”

Asked about US President Donald Trump’s decision to roll back newly announced tariffs, Villeroy said it was a good thing “when certain unacceptable threats are withdrawn,” adding that this should not deter Europe pursuing greater economic sovereignty by reducing its reliance not only on the US, but also on China.

Turning to France’s 2026 budget, he acknowledged that adopting a budget represented “progress,” but said that a deficit exceeding 5% of GDP placed the country “in danger.”

“Now, we will indeed have to respect this ceiling, and I would have liked to see a greater reduction in the deficit,” he said.