(Boursier.com) – On the eve of the publication of growth figures for the second quarter while consumer prices declining, the first secretary of the Socialist Party, Jean-Christophe Cambadélis believes it is now “inevitable” that France abandon its goal of reducing the deficit to 3% of GDP expected to end 2015 “These thresholds have been set before the crisis. And today there is a new situation,” explains t he said in an interview with the newspaper ‘Les Echos’ published Thursday.
“More time”
“You have to give time to reduce the public deficit to reach this goal 3%, “he adds. France, which has already got two more years to the European Commission to meet the objectives of the Stability Pact wishes indeed use the flexibilities it offers. In addition, it is expected that if growth deteriorates unexpectedly, Member States can benefit from additional time, provided you have made the necessary structural efforts. The government intends to highlight the ongoing reforms, particularly in terms of 50 billion euros in savings over three years, and its Pact responsibility.
Revised forecast expected
On 4 August, Prime Minister Manuel Valls acknowledged that “the return will be in a difficult situation.” “Do nothing to hide, the Minister of Finance will report in mid-August on the economic situation.” According to some press rumors, Michel Sapin could lower the growth forecast of 1% to 0.5% for 2014 deficit targets should therefore be revised.
– © 2014 Boursier.com
No comments:
Post a Comment