Current political uncertainty in France has a real impact on the economy as it affects business and consumer confidence and development, said Central Bank’s head, Francois Vilua on Radio RTL on Friday, although he added that the country’s financial situation remains stable.

President Emmanuel Macron is expected to appoint his sixth prime minister in less than two years on Friday, with the aim of ending the worst political crisis of the eurozone’s second -largest economy for decades.

The Bank of France Governor noted that the next government should overcome political disputes and continue to aim for a significant reduction in the budget deficit next year.

Outgoing Prime Minister Sebastian Lekorni paved the way for smaller cuts in 2026, as part of an agreement on economic policy that, he says, will allow President Emmanuel Macron to appoint a new prime minister until Friday night.

Lekorni said France had to maintain a deficit at 5% of GDP, but this is higher than the 4.7% previously targeted and the 4.6% targeted by its predecessor, François Bairou, according to Bloomberg.

Billewash said that the country should eventually comply with its commitment to the European Union and reach 3% by 2029, which means that the deficit should not exceed 4.8% next year, after 5.4% in 2025.

“I can tell you that all of Europe is watching us now, as well as investors who can punish us in the markets,” the Central Bank Governor at RTL said.

The three -quarters of next year’s savings should come from measures to reduce spending, with “targeted and extraordinary” supplementary taxes, he said.

When asked if he could participate in a new government, Billero replied that “everyone has the mission to serve their country, mine is in the Bank of France.”

The Bank of France’s monthly report published on Thursday showed that the economy withstands the political storm with 0.3% economic growth in the third quarter. This means that the economy is on the right track to achieve central bank’s prediction for 0.7% for the whole year, Billero said.

However, the central banker said that political uncertainty at national level costs France at least 0.2 percentage points in growth.

“It’s time for compromises,” he said. “Like many French, I am bored of this huge waste. France has financial advantages and there are solutions for the budget, “he concluded.