12.03.2026 15:52
The President of the French Central Bank, François Villeroy de Galhau, warned that the government's fuel aid program in response to fluctuations in oil markets due to conflicts in the Middle East would increase public debt, stating, "We have run out of money."
François Villeroy de Galhau, the Governor of the Bank of France, stated in a program he participated in on the RTL channel that governments have implemented certain measures against the fragility created in the oil markets by developments in the Middle East, adding that the French government taking steps in this direction and providing potential fuel support would have negative effects on the economy of a country already burdened with debt.
Galhau expressed that the state of public finances does not allow the government to provide new subsidies, using the phrase "We have no money left."
"THIS WILL PUNISH THE FRENCH"
Galhau, who assessed that "If we further increase budget deficits and debts, this will lead to an increase in long-term interest rates, meaning 10 years and above, and this will punish the French," emphasized that the strongest response to the energy crisis would not be providing one-time state aid but investing in energy transition.
AMONG THE COUNTRIES WITH THE HIGHEST DEBT BURDEN
With a public debt to gross domestic product (GDP) ratio of around 111.7%, France is among the countries with the highest debt burden along with Italy within the European Union (EU).
Additionally, budget proposals aimed at reducing public debt constitute one of the main points of disagreement between the government and the opposition.