France Needs ‘Significant’ Deficit Reduction, Villeroy Says

France must make major spending cuts to help bring down a budget shortfall that’s fueling political turmoil and rattling bond markets, its central-bank governor said.

“We have to reach a significant reduction of the fiscal deficit next year,” Francois Villeroy de Galhau told Bloomberg TV in New York. “Most of the solution belongs to the expenditure side. Part of it could be on the tax side.”