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France should clarify budget strategy amid political uncertainty -ECB's Villeroy

French bonds and stocks have underperformed other European markets this week
French bonds and stocks have underperformed other European markets this week

Bank of France head and European Central Bank (ECB) member Francois Villeroy de Galhau has said that while he could not comment specifically on France's domestic political situation, the country needed to clarify its budget strategy.

French bonds and stocks have underperformed other European markets this week after President Emmanuel Macron called for a snap parliamentary election.

"I think that it is important that, whatever is the result of this vote, France can quickly clarify its economic strategy and in particular its budget strategy," he told Radio Classique.

"What we have said in our outlook, is that inflation in France should go below 2% from the start of next year, and could even come in on average at 1.7% in 2025," added Villeroy.