Minister of Michel Sapin Finance and Secretary of State Budger Christian Eckert at Bercy during a press conference September 9, 2014 in Paris (AFP / Eric Feferberg)
France announced Wednesday she would again grow back to 2017 instead of 2015, its objective of reducing the public deficit below the EU limit of 3% of gross domestic product, citing “exceptional circumstances” in Europe.
yesterday’s announcement of a further postponement of the objective of reducing the public deficit in France and reduced growth worries columnists because it demonstrates “the economic situation of the country” and a government that ” not control anything. ”
The deficit, the difference between revenue and expenditure of the State, local authorities and social security will even increase as a percentage of gross domestic product (GDP) this year, to 4, 4% of GDP against 4.2% last year, a
It should gradually decrease to 4.3% in 2015 and go under the 3% threshold in 2017 allowed Mr. Sapin. has t he said.
France had twice requested to postpone this commitment, under the presidency of Nicolas Sarkozy then under Francois Hollande.
European Commission was quick to respond Wednesday, calling Paris to present “credible steps” to its plan to reduce spending by 2015.
The government initially expected a deficit reduced to 3.8 % of GDP this year, falling to 3% next year.
The French finance minister Michel Sapin in Paris September 10, 2014 (AFP / Eric Feferberg)
But this scenario is disturbed by what M . Sapin described as “exceptional circumstances” of the economy in the eurozone, “marked by a very low growth combined with a slowdown in inflation.”
By using the term “exceptional circumstances” , terminology by European treaties allow derogations from budgetary targets, Mr. Sapin sent an implicit message to the Commission, the guardian of fiscal discipline.
“We are not asking for changes in EU rules we do not ask their suspension and no exception, “he clarified, however
The Minister also corrected Wednesday its growth forecast for France. 0.4% this year and 1 % next year.
He said further that the low inflation, weighing on public accounts by reducing revenues and neutralizing some savings efforts should continue in France, with a rate expected 0.5% in 2014 and 0.9% in 2015
-. Undertaking on money –
But despite the sluggish growth, the French economy has begun timidly create jobs in the second quarter, with 8,300 new jobs (+0.1%) in the commercial sector, Insee said Wednesday.
revised French government on deficit and growth (AFP / P. Pizarro / A.Bommenel)
Forecast
Minister François Rebsamen work called bosses to go “faster” in job creation under the Covenant of responsibility that provides 40 billion reduction in labor costs and taxes over three years. 50 professional branches joined Thursday by the Minister, 17 took no negotiation.
Anxious to compensate the bad effect, with its European partners, this revision of the deficit path, Mr. Sapin has given a pledge on public spending. In a complete about-face, he announced that the savings on the natural progression of public spending by € 21 billion planned for next year would be well maintained.
“Spend management is a must and we will go to the end of the 50 billion in savings planned through 2017, starting with 21 billion savings for the single year 2015, “he said.
There are only a week, Mr. Tree had told AFP that the first $ 50 billion would not be achieved due to lower inflation that destroys the calculated no longer indexing expenses or benefits on the higher prices economies.
“The two billion savings will not be realized because of the weakness of the Inflation will therefore be compensated, “said Mr. Sapin Wednesday, heralding saving measures, which will be detailed during the presentation of the budget on 1 October. “We will not be funding anything by tax increases solely by economies,” he later told the National Assembly.
“We do not change our path. Serious budget remains the commitment that has been made since the beginning (2012, ed), “assured the spokesman Stéphane Le Foll government.
Expressing” proud “of the German budget in balance 2015, Chancellor Angela Merkel called for “strict discipline” saying that “what is good for Germany is also to Europe.”
The same day, former French Minister of Finance Pierre Moscovici was confirmed as Commissioner for Economic Affairs, while Germany saw a dim view of the idea of entrusting budget oversight to the representative of a country that pushes its objectives.
“It seemed useful to those who know best the problems some countries are from these countries,” ruled Wednesday Jean-Claude Juncker, the chairman of the new Commission, citing “budgetary situation in France . “
” The government is handcuffed from all sides. He is forced by Europe and deficits on the one hand, and its majority on the other, “lamented the president of the employers’ organization CGPME, Jean-François Roubaud, in an interview with the Opinion.
Copyright © 2014 AFP. All rights reserved and representation.
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