EU affairs: France is not Europe’s sick man, says Valls
Paris committed to reducing public spending, drive economic reforms
HAGUE:
French Prime Minister Manuel Valls has said that Paris was absolutely determined to drive economic reforms and that France was not ‘Europe’s sick man’.
Valls was visiting Netherlands for talks with Dutch counterpart Mark Rutte on how to kick-start the continent’s economy.
“I want to tell you that we’re absolutely determined to carry through our reforms,” said Valls after Dutch complaints that Paris was breaking the European Union’s (EU) spending rules.
France has said that next year’s deficit – the shortfall between revenue and spending – will hit 4.3% of the annual economic output, far above the EU’s 3.0% ceiling.
Valls said Paris was committed to reducing public spending while turning its back on political convenience.
It planned to save €21 billion ($26 billion) in 2015, “We respect the rules of the game in the Eurozone and France has a commitment to itself,” he said.
However, Valls stressed that it was a tough target to make with the slow economic growth.
Brussels has written to France to demand explanations for the overshoot, according to a letter confirmed by President Francois Hollande this week.
France shocked its European partners in September by going back on a pledge to get its deficit to below the three percent ceiling by next year.
Instead, it pushed back this target to 2017 – the year of the next French presidential election – putting Eurozone’s second-largest economy on a collision course with Brussels.
Published in The Express Tribune, November 2nd, 2014.
French Prime Minister Manuel Valls has said that Paris was absolutely determined to drive economic reforms and that France was not ‘Europe’s sick man’.
Valls was visiting Netherlands for talks with Dutch counterpart Mark Rutte on how to kick-start the continent’s economy.
“I want to tell you that we’re absolutely determined to carry through our reforms,” said Valls after Dutch complaints that Paris was breaking the European Union’s (EU) spending rules.
France has said that next year’s deficit – the shortfall between revenue and spending – will hit 4.3% of the annual economic output, far above the EU’s 3.0% ceiling.
Valls said Paris was committed to reducing public spending while turning its back on political convenience.
It planned to save €21 billion ($26 billion) in 2015, “We respect the rules of the game in the Eurozone and France has a commitment to itself,” he said.
However, Valls stressed that it was a tough target to make with the slow economic growth.
Brussels has written to France to demand explanations for the overshoot, according to a letter confirmed by President Francois Hollande this week.
France shocked its European partners in September by going back on a pledge to get its deficit to below the three percent ceiling by next year.
Instead, it pushed back this target to 2017 – the year of the next French presidential election – putting Eurozone’s second-largest economy on a collision course with Brussels.
Published in The Express Tribune, November 2nd, 2014.