What is the state of the French economy, particularly inflation?
In 2025, France and Europe secured a crucial victory: inflation fell to 1.9% in the euro area and to 1.1% in France in February 2026. This result is the culmination of a long journey, from the deflationary shock of Covid, which severely disrupted economic activity, to the war in Ukraine, which triggered an inflationary surge that monetary policy was able to contain. With the sustained decline in inflation, monteary policy has fulfilled its mission of ensuring price stability, and will continue to do so in the face of the challenges posed by the latest oil crisis.
What other challenges do we face?
We must bring both our debt back under control and make the French and European economies more dynamic on a sustainable basis. Our potential growth has almost halved over a generation, from 2% in 2000, to 1.1% today in France, whereas it stands at 2.2% in the United States. The solutions are well known and presented in detail in the Draghi and Letta reports: we must integrate the single market more, invest better through a Savings and Investment Union, and innovate faster by means of simplification in France. We also know that we must reduce public debt, which is stifling both the budget – with an additional €70 billion in interest payments each year after ten years – and the economy through the extra cost of financing.
What should the role of monetary policy be? Are interest rates at the right level?
The “Iran shock” means a little more inflation and a little less growth. We will act pragmatically, guided by data and forecasts, but we also need to dispel a misconception: our monetary policy remains more accommodative than that of the Fed, with significantly lower rates and a larger portfolio of government securities.
You mentioned simplification. How should this be reflected in the area of financial stability?
Simplification means, first and foremost, creating the conditions conducive to more effective innovation: streamlining where possible, without opting for dangerous US-style deregulation. Reports from the ECB and the Single Supervisory Mechanism last December put forward some initial concrete proposals: simpler regulation and risk-focused supervision. These are key areas that we need to build on to move forward collectively.
In a highly uncertain geopolitical climate, how is the Banque de France paving the way for the European digital currency?
Not only is the world a more uncertain place, but tokenisation is transforming finance, encouraging us to innovate to strengthen our monetary sovereignty and resilience. As early as 2026, Europe will take a decisive step towards its first wholesale digital currency, used for interbank settlements, and we also hope to see the emergence of the first tokenised bank deposits or the creation of euro-denominated stablecoins. For the general public, the digital euro will only succeed if it is underpinned by a mutually beneficial partnership between the public sector and private players – such as the Wero solution – rather than by intra-European competition that would only benefit American players.
How is the Banque de France helping businesses to deal with the economic risks linked to climate change?
Extreme weather and climate events such as heatwaves and flooding are becoming more frequent and are already exposing a large number of businesses to increased operational and financial risks. To help them anticipate these risks more effectively, this year the Banque de France has provided the ODACC tool, which enables them to assess their climate-risk exposure in an accurate manner. But to mitigate climate change, we also need to support the financial sector and businesses in their transition towards a low-carbon economy.
The Annual Report also presents your financial results. What are they like this year?
Our losses from monetary operations, which were high last year, have significantly decreased due to lower interest rates and the reduction in the size of our balance sheet. We have also continued to bring our gold reserves into line with technical standards, which generated an exceptional capital gain in 2025. This means that our overall financial result is clearly positive. Furthermore, we continue to keep a tight rein on our operations whilst adapting the services we provide to the French economy and society to changes in the economic landscape.
This will be your last foreword to the Annual Report, as you have announced that you will be leaving the Banque de France in June 2026. What is the reason for this?
This is the eleventh annual report I have had the honour of presenting! The Banque de France has been the greatest mission of my career as a public servant, and my departure is a personal decision taken by the free-minded individual I have always strived to be. I knew that after my time at the Banque de France, I would want to take on another mission in the public interest, with a social impact. Jean-Marc Sauvé asked me to succeed him as from June 2026 as President of the Apprentis d’Auteuil Foundation, a major player in childrens’ welfare and vocational training for young people in difficulty. After giving it a great deal of thought, I decided to accept, especially as the core of my mission will have been completed by June.
The Banque de France has undergone significant transformation since your appointment as Governor. What was the motivation behind this?
The Banque de France serves French people and businesses and therefore has a duty to provide them with the best possible service in the most cost-effective way. Since 2016, thanks to two ambitious strategic plans, we have remained steadfast in our missions throughout the successive crises, whilst becoming more efficient. We are adapting our currency and financial system to the digitalisation of the economy and developing tools to ensure that banks and businesses remain resilient in the face of climate and cyber risks. At the same time, we are ramping up the support we provide through our network of 105 branches throughout the country. This is the result of the unwavering commitment of the workforce of nearly 9,000 men and women who work at the Banque de France. Thanks to them, we have successfully completed a demanding yet exemplary transformation of public services. This Annual Report is a tribute to them, amidst the all-too prevalent pessimism regarding our country and its public service.
