Bank of France Governor Steps Down Early Ahead of Key Election

Bank of France Governor Francois Villeroy de Galhau plans to step down next June, over a year before his term ends, paving the way for President Emmanuel Macron to name his replacement before the critical 2027 presidential election. The anticipated changeover comes amid concerns over the possibility of a far-right electoral victory.

Villeroy, an advocate for lower interest rates in the European Central Bank's governing council, has announced his decision to leave in a letter to central bank staff. He intends to lead a Catholic foundation supporting vulnerable youth and families, stating his departure is a personal decision and not politically motivated.

The timing of Villeroy's resignation appears strategic, aimed at establishing leadership continuity and avoiding market instability. His successor, serving a six-year renewable term, must navigate approval processes in both the National Assembly and Senate. Speculation over potential candidates includes senior figures from the French Treasury and former ECB policymakers.