Francois Villeroy de Galhau, who has led the Bank of France since 2015 and participates in the European Central Bank's Governing Council, informed central bank employees in a letter that he will leave his post in June. At 66 years old, Villeroy told staff he intends to head a Catholic foundation that focuses on supporting vulnerable youth and families.
The announcement means Villeroy will vacate the governor's office more than a year earlier than the scheduled end of his term. His departure creates an opening for President Emmanuel Macron to propose a successor for the central bank role. Under the stated procedures, any presidential nominee must obtain approval from lawmakers who sit on the National Assembly's finance commission.
Villeroy's role at the Bank of France also includes membership of the ECB's Governing Council, the body responsible for setting monetary policy across the eurozone. The central bank confirmed the timing of his planned exit and his post-public service intentions in its internal correspondence, as conveyed to staff in the letter.
The timeline set out by Villeroy leaves a transition period ahead of his June departure. The nomination and approval process will determine who occupies the seat at the Bank of France and who represents the institution at the ECB Governing Council after he leaves. The announcement did not include further details on interim arrangements or on the selection process beyond the requirement for parliamentary approval of any candidate proposed by the president.
This development closes Villeroy's tenure at the national central bank, which began in 2015, and signals his move from public central banking to leadership of a faith-based charitable organization focused on young people and families in vulnerable circumstances. Other specifics about his future role at the foundation or its operations were not provided in the communication to staff.
Key takeaways
- Francois Villeroy de Galhau will step down as Bank of France governor in June, more than a year before his term was due to end.
- He plans to lead a Catholic foundation that supports vulnerable youth and families.
- President Emmanuel Macron will have the opportunity to nominate a successor, and that nomination requires approval from the National Assembly's finance commission.
Context and procedural notes
Villeroy has served as the head of the French central bank since 2015 and is a sitting member of the European Central Bank's Governing Council, which is charged with setting monetary policy for the euro area. His early departure means the Bank of France will need a new governor who will also assume the responsibilities associated with that Governing Council seat. The formal nomination by the president is subject to review and approval by the finance commission in the National Assembly, as noted in the announcement.
Uncertainties highlighted by the announcement
- The timing and outcome of the presidential nomination and the finance commission's approval process remain open.
- Details about transitional arrangements at the Bank of France and representation on the ECB Governing Council after Villeroy's departure were not specified in the correspondence to staff.