Saturday 24 June 2017

Le Pen's euro exit plan would cost France billions, says central bank chief

Marine Le Pen wants France to leave the euro (Michel Euler/AP)
Marine Le Pen wants France to leave the euro (Michel Euler/AP)

Presidential candidate Marine Le Pen's proposal to leave the euro currency would cost France more than 30 billion euro (£25 billion) a year in extra debt interest, the country's central bank chief has said.

Francois Villeroy de Galhau vigorously defended the euro on France-Inter radio, warning voters not to believe Ms Le Pen's nationalist promises of stronger purchasing power if France abandons the shared currency.

Mr Villeroy de Galhau said leaving the euro would unleash high inflation, devastating individuals' savings.

A major question is how Ms Le Pen would handle France's considerable debt.

She said last week she would redenominate most of it into a new currency.

The central bank chief estimated that the extra debt interest would be over 30 billion euro a year, roughly equivalent to France's entire military budget.

Press Association

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