PARIS (Reuters), -France can’t afford the tax cuts or spending increases being floated by presidential hopefuls ahead of April’s election, said the head of France’s central bank on Tuesday.

France’s public debt soared to 115% from below 100% during the COVID pandemic. President Emmanuel Macron had promised that he would do whatever it takes to support the economy through the crisis.

Francois Villeroy, de Galhau, Bank of France Governor said the future government would only continue with current trends over the past decade.

Today’s public discussion is flooded with proposals for additional spending cuts and tax reductions. “The reality is that our country cannot afford them both,” he said at a Paris conference held by Dauphine University.

He said, “We can’t allow our public finances deteriorate any further.”

France’s presidential elections will be held on April 10, with the first round taking place on April 10. The second round takes place on April 24.

Villeroy claimed that an increase of one percent in interest rates, “far from an extreme situation”, would lead to a total cost of 39 Billion Euros (or $44 billion) each year over 10 years. It is equal to France’s defence budget.

He stated that the rising cost of energy and an ageing population means politicians must act now to ensure the financial stability of the country.

Villeroy said, “Sooner than later that will cause either a social or political crisis or a crisis in confidence among international investors.”

A strategy was needed to bring down debt levels to less than 10% of GDP within ten years. This would include focusing on France’s growth potential and keeping the annual growth in public spending to no greater than 0.5%.

A higher level of employment, comparable to Germany’s peers, is key to faster growth. This hinges on better education for youth and the implementation of retirement reform. Villeroy said.

($1 = 0.8812 euros)