Brussels, 30/05/2012 (Agence Europe) - On French television on Tuesday 29 May 2012, the French president, François Hollande, discussed eurobonds, Greece and growth stimulus.
Eurobonds. Hollande said the German chancellor, Angela Merkel, was hostile to the idea of eurobonds, in other words allowing Europe to borrow money, but never says never, simply “Not yet”. He said that Germany might be open to various compromises. The most recent European summit discussed ways of boosting the economic arm of economic and monetary union, which could lead in the long-run to a pooling of some eurozone sovereign debt, but the German government fears that eurobonds would push up its own borrowing costs and would also remove a lever for pressurising struggling eurozone members.
Hollande said it had been agreed that growth stimulus measures would be introduced alongside the fiscal compact, but didn't comment on how these measures would mesh with the 25-member sState fiscal compact (see EUROPE 10619). He said Merkel goes along with the idea of growth, the same way as Hollande himself goes along with the idea of budget restraint. Commenting that austerity programmes were mushrooming across Europe as potential economic recession is looming, Hollande said he refused to see Europe as an ailing continent, like at the recent G8 summit, where the EU's partners had commiserated with Europe. He added that Europe was the world's leading economic powerhouse, with its own currency, that has to be defended. It has huge investment capacity, which must be put to work, he said.
Greece. Holllande hoped the 17 June general elections in Greece, which he said he respected, would lead to the country choosing a European future, but warned the Greeks that their vote on 17 June would have serious consequences for themselves and the rest of Europe alike. Asked about the rampant tax evasion in Greece, Hollande said the country had given a lot recently in terms of reduced spending power and reduced welfare, but it was not fair for rich Greeks to avoid tax.
Commenting on France's relations with Germany, Hollande said friendship was needed between the two countries that could then lead the other member states in full respect of EU partners and institutions. (MB/transl.fl)