Brussels, 17/12/2010 (Agence Europe) - The French president, Nicolas Sarkozy, said that the European Council had made progress on stability for the eurozone, but needed to go much further in terms of economic governance and convergence. To this end, the priority should be dealing with the competitiveness gaps between the 16 eurozone countries, but ideas needed to develop, he told reporters, adding that this did not diminish the importance of what was agreed upon on Friday. He said that economic governance was a priority for France and a resource to aid convergence of economic policy, which should itself reduce gaps in competitiveness.
Regional policy can be very useful in reducing gaps in competitiveness, Nicolas Sarkozy told a reporter who wanted him to comment on the EU's budget. Sarkozy said that it was not by doubling the budget that one would solve the Irish problem. France is not calling for a reduction in the EU's budget, but rather for stabilisation of the budget at a time when member states are reducing their own budget spending. He explained that this was the objective being pursued by France and its “English and German friends”.
Asked to comment on calls from Martine Le Pen in France for the euro to be scrapped, Nicolas Sarkozy said that leaving the euro would be irresponsible and unthinkable because it at the heart of the European project and if the euro toppled, then it is whole European project that would be fundamentally damaged. The euro symbolises Europe, he said, and if the euro falls, Europe will explode. He swept aside this idea, pointing out that France backed the euro with all its force.
Nicolas Sarkozy said he was astonished at Moody's downgrading of Ireland's sovereign debt. He said he trusted the action of the Irish government and the measures in place. (A.N./transl.fl)