France is "putting the house in order" and is capable of slashing its burdensome budget deficit, despite the political turmoil facing the country, the head of the country's central bank insists.
The country is currently subject to the EU's excessive deficit procedure, with the bloc recommending Paris bring its national deficit closer to 3% of GDP, compared to 5.1% as of last year.
Market concerns about political instability hampering efforts to bring the deficit under control have weighed on French bond markets this year, exacerbating pressures felt globally from the U.S.-Iran war and consequential inflation fears.
Speaking to CNBC's JP Ong on the sidelines of the IMF Meetings in Bangkok, Banque de France Governor Emmanuel Moulin said that he did not believe rising government borrowing costs in recent months were linked to a change in the French fiscal position.
"It's really about political uncertainty and the question whether the budget will be adopted with [delivering] a 5% deficit, which is the objective of the government," he said. "And I think to reassure markets, it is important that there is a budget that is voted and a budget that sticks to the 5% deficit."