Le Pen's anti-euro plan 'to cost France 30 bn a year'

2017-02-13 22:52
Marine Le Pen, leader of the French far-right Front National party in Paris. (Alain Jocard, AFP)

Marine Le Pen, leader of the French far-right Front National party in Paris. (Alain Jocard, AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Paris - Marine Le Pen's pledge to ditch the euro if elected French president would cost the country over €30bn a year in increased borrowing costs, the country's central bank governor warned on Monday.

With less than three months to go before the first round of the election Le Pen is polling strongly on a nationalist platform of heavily curtailing migration, relinquishing the euro and organising a referendum on France's EU membership.

Banque de France governor Francois Villeroy de Galhau said that pulling out of the single currency would drive up the cost of France's borrowing.

"If we were alone, we would be helpless faced with financial market speculation... and helpless faced with US pressure on the dollar," he told France Inter radio.

"Financing France's public debt would cost over €30bn a year: that's the equivalent of France's annual defence budget," he said.

Villeroy de Galhau did not give a breakdown of the calculation but said the interest on France's debt had fallen by 1.5 percent since it adopted the single currency.

"That is very significant for those with home loans, for business investments and all taxpayers," he said.

He also credited the euro with keeping inflation down, causing it to fall from nearly five percent annually before the 1992 Maastricht Treaty that ushered in the euro to under two percent currently.

Le Pen has argued that France needs to take back control over its monetary policy to boost growth - forecast to come in at 1.3 percent in 2017, below a eurozone average of 1.7 percent - and rein in unemployment.

Villeroy de Galhau acknowledged that the French economy needed to be "repaired and refurbished" but rejected the notion that the euro was the cause of its malaise.

"Many countries that share the euro with us are doing well on the economic front," he said, warning against "tearing down the foundations, our currency the euro, which forms a very strong basis in uncertain times."

Read more on:    marine le pen  |  france

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24


WATCH: Man films himself going down water slide upside down as things go very wrong…

What is at first an exciting tummy-turning adventure stunt, quickly turns into a scarily bad idea caught on camera. Take a look:


You won't want to miss...

Best date night restaurants in South Africa
WATCH: Ryan Reynolds offers fans a free tattoo in new Deadpool 2 teaser
Should you date your co-worker?
Hip Cape Town bars to discover this summer
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.