Denis Beau: Economic developments in France and the euro area
Remarks by Mr Denis Beau, First Deputy Governor of the Bank of France, at the European Economic and Financial Center (EEFC) Seminar, Paris, 27 February 2026.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Slides accompanying the speech
Ladies and Gentlemen,
Let me begin by thanking the European Economic and financial Center and its Chairman, Professor Scobie, for their invitation and for organizing today's exchange. I am grateful for the opportunity to discuss recent economic developments in France and in the euro area, and to share our assessment of the short-to-medium term outlook.
Over the past few years, our economies have been confronted with a series of significant and atypical shocks: the Covid-19 pandemic, the War in Ukraine, and renewed global trade tensions. Despite this challenging environment, economic activity and employment have proved remarkably resilient.
At the same time, inflation, which had reached unprecedented double-digit levels, has receded close to our 2 percent reference value. The disinflation process is now essentially complete: in January, inflation stood at 1.7% in the euro area. Thanks to the credibility of the European Central Bank, the monetary policy tightening needed to bring inflation down did not trigger a recession-an "immaculate disinflation" that few thought possible. As President Christine Lagarde indicated, we are "in a good position", although vigilance and agility remain essential in an uncertain environment.
In that context, I have structured my remarks around three issues: the economic momentum since the beginning of the year, our central scenario for the medium-term outlook and our assessment of the balance of risks.