- Villeroy to stand down in June, more than a year before end of his term
- In letter Villeroy says leaving to lead a Catholic foundation supporting vulnerable youth and families
PARIS, Feb 9 (Reuters) - Bank of France Governor Francois Villeroy de Galhau will stand down in June, more than a year before the end of his term, the central bank said on Monday, meaning the European Central Bank loses a consistent voice for lower interest rates.
Villeroy, 66, announced his departure in a letter to the central bank's staff, saying he was leaving to lead a Catholic foundation supporting vulnerable youth and families.
Villeroy had been due to stand down in October 2027. His early departure allows President Emmanuel Macron to name a replacement ahead of the next presidential election in spring 2027, a race polls show either the eurosceptic far-right Marine Le Pen or her protege Jordan Bardella could win.
His successor must be approved by the finance commissions of the National Assembly and Senate.
"I made this important decision naturally and independently," Villeroy told staff. "The time between now and the beginning of June is sufficient to organise my succession in peace."
ECB LOSES POLICY DOVE
With Villeroy's departure, the European Central Bank will lose one of its most outspoken policy doves. Villeroy has been consistently warning for months about the downside risks to inflation.
French Finance Minister Roland Lescure said Villeroy's actions "have always been guided by rigour, independence and concern for the public interest."
Governors of the Bank of France usually have previously spent time at the Treasury, which deals with many of the most sensitive issues within the French Finance Ministry.
Two sources said that its current director Bertrand Dumont or past head Emmanuel Moulin would be good candidates, as well as Bank of France deputy governor Agnes Benassy-Quere or former ECB policymaker Benoit Coeure, both of whom have had positions in the Treasury.
Former OECD Chief Economist Laurence Boone, currently at Spanish bank Santander, is also seen as a possible candidate to replace Villeroy, both sources said.
Reporting by Leigh Thomas; Additional reporting by Michel Rose; Editing by Toby Chopra and David Holmes
Source: Reuters