Brussels, 27/08/2003 (Agence Europe) - After his meeting on Wednesday with the President of the European Commission, Romano Prodi, Prime Minister Jean-Pierre Raffarin declared during a press conference that France would remain "committed" to the Stability and Growth Pact, while stressing that its priority was to "do everything to bring growth" to his country in 2004. Mr Prodi, for his part, insisted on the need for the Member States to bow to "common rules" and demanded that Member States fully cooperate with regards fighting public deficit.
"We are committed to the Stability Pact", Mr Raffarin said, also restating that France is committed to reducing its structural deficit in 2004. The French Prime Minister gave his assurance that the aim of a budgetary deficit "below 3%" will be included in Agenda 2006, the French government's reform programme for the next three years. While carefully avoiding asking for the Pact to be made more flexible, he said that it seemed "interesting to have a qualitative and strategic approach to spending" (citing, by example, those in favour of research). Mr Raffarin specified that figures on the 2003 deficit of France as well as estimates for 2004 will be revealed mid-September. "My number one duty is to rally all the country's forces to bring growth and employment. I shall assume my responsibilities", Mr Raffarin summarised.
"During my meeting with the Prime Minister, I stressed the importance of economic and structural reform and encouraged him to keep them at the top of the agenda of his government", Mr Prodi said for his part, warning that "the Commission must apply the treaty to the service of general interest" and that "it will do so". "On behalf of the Commission, I recalled that we had no other choice than to apply the rules of the treaty", he continued, before going on to specify that "this will be done with all flexibility possible but we should be quite clear about one thing: flexibility means reciprocity". Mr Prodi gave a lesson in economic policy saying that "recourse to deficit and public debt has never brought a country out of its difficulties over the past two years of economic slowdown, and this will continue to be true". "By making the public debt worse, we are taking the risk of passing the slate on to the future generations", he warned. Mr Raffarin also pledged to continue reform action in 2004 and 2005 by citing, among other things, reform of health insurance and the planning act for national education.
Mr Raffarin hopes to avoid de-industrialisation and bankruptcy of Alstom group
Answering questions on the French issues currently on the table of Commissioner Monti (DG Competition is currently examining aid given to the Alstom group, a credit line granted to France Telecom, means for reimbursing aid to Bull, as well as an unlimited guarantee for EDF). Mr Raffarin confirmed he had discussed with the European Commission about these dossiers. These subjects are "treated in an extremely attentive way on both sides", he said. Speaking in particular of the support provided for the Alstom group (we recall that the French government plans to make EUR 600 million available to the group in exchange for a 31.5% stake in its capital), the Prime Minister stressed that he had "simply urged for the French strategy, namely that of avoiding de-industrialisation and bankruptcy" for a major energy and transport group. "Our strategy is to keep a major industrial pole in Europe", Mr Raffarin stressed.