PARIS (Reuters) – A France government package aimed at quelling the social unrest from the “yellow vest” crisis will give growth a slight boost this year, said the head of the French central bank.
Bank of France Governor Francois Villeroy de Galhau said growth was “still quite satisfying”, despite the recurring waves of protests that have forced many shops and restaurants in Paris to shutter up on Saturdays due to street violence.
“The disruption to economic activity from the ‘yellow vest’ crisis nonetheless has significant short-term crisis,” Villeroy told the Senate’s finance commission on Wednesday.
Desperate to contain the uprising, President Emmanuel Macron’s government announced wage increases in December for the poorest workers and a tax cut for most pensioners.
Villeroy said that package, worth 10 billion euros ($11.42 billion), would add 0.1-0.2 percentage points to French growth this year, which the central bank sees at 1.5 percent.
($1 = 0.8759 euros)
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