Brussels, 09/04/2014 (Agence Europe) - On Wednesday 9 April, the European Commission took note of the new French government's economic and budget policies.
Simon O'Connor, spokesman for Economic and Monetary Affairs Commissioner Michel Barnier said he welcomed the renewed commitment by the French government to sort out is public finances and pursue the objectives decided by France and its European partners at the European Council in June (see EUROPE 11055). He welcomed the reduction in deductions from salary, particularly the lowest salaries, and the plan to reduce the fiscal pressure on companies to help them become more competitive. He said both proposals went in the direction of the recommendations for France from the Commission and the Council.
At the political level, the Commission already had doubts about France's reform capacities well before Socialist President François Hollande came to power. While welcoming the clear commitment by politicians, the Commission wants faster, stronger action in practice, adding that, under the pressure of competitiveness, there was an energy and investment capacity in France that was just waiting to be put into use and this is the bull that needs to be taken by the horns to generate a surge in growth as a matter of priority, which will enable the budget commitments to be kept, rather than the other way round.
The Commission will draw up economic forecasts for France based on its stability and reform programmes, to be submitted at the end of the month, and wants to know how Paris is planning to finance the announced measures while respecting its target of reducing the public deficit to 3% by 2015. The Commission will officially publish its recommendations for France and the rest of the eurozone in June. (MB)