French central bank governor quits and leaves Macron to pick successor

The French central bank governor handed in his resignation on Monday, which will take effect in June 2026.

This unexpected departure occurs roughly 18 months before his second term was scheduled to conclude in October 2027.

The move strategically shifts the responsibility of selecting his successor to the current President of France, Emmanuel Macron.

If Villeroy de Galhau had completed his full tenure, the appointment of the next head of the Bank of France would have fallen to the winner of the April 2027 presidential election, which current polling suggests could favour a far-right candidate.

While the French central bank governor cited personal reasons for his departure, specifically to lead the Fondation Apprentis d'Auteuil, a charity for vulnerable youth, the timing is perceived as a calculated effort to safeguard the institution's future leadership.

In a press release, Villeroy de Galhau reassured that "a bit more than a year before the conclusion of my second term, it seems to me that I would have accomplished the core of my mission".

In a separate letter to Bank of France employees, the governor also acknowledged that “this decision may come as a surprise”.

Resignation after stabilisation

Villeroy de Galhau may also have carefully chosen the right moment of stability in the present.

After a long and intense legislative deadlock in France, that saw the collapse of multiple governments, Prime Minister Sébastien Lecornu successfully navigated the approval of the 2026 budget which was announced at the start of the month.

Throughout late 2025, France's inability to pass a budget had rattled investors, pushing the risk premium on French debt to its highest levels in years.

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By waiting until this budget was finalised, Villeroy de Galhau ensured his departure did not trigger fresh market panic or exacerbate the existing political crisis.

President Emmanuel Macron can now focus on appointing a successor who will likely align with his pro-European and centrist economic vision.