This is probably what is called a moment of truth. After months of hesitation, the Minister of Finance, Michel Sapin acknowledged Wednesday morning that the main economic objectives of the government would not be required. growth will be much lower than expected: 0.4% this year instead of the 1% reported. Government spending will continue to rise. And the public deficit will not be mastered for years (the French finance minister acknowledged that France was once again pushing at 2017 instead of 2015 , its commitment to the EU limit of deficit , or 3% of gross domestic product, it is the third time that Paris and pushes his promise).
Clearly, despite tax increases, tax revenues are not enough to fund the lifestyle of the state. “We will not go looking for new recipes, that is to say, higher taxes, and we do not change strategy on reducing public spending. But we do not go beyond, or in new revenue with tax increases , or by strengthening the decline in public expenditure “hammered Stéphane Le Foll, spokesman for the government.
Turnabout on Fir savings of France
Despite the sluggish growth, the French economy timidly started creating jobs in the second quarter, with 8300 new positions (0.1%) in the commercial sector, said Wednesday INSEE. Labour Minister François Rebsamen called bosses to go “faster” in job creation under the Covenant of responsibility. And assessment of liability pact, drawn Wednesday by François Rebsamen, remains low: about 50 professional branches joined by the Minister, 17 took no negotiation, a finding “unacceptable” to the Minister of Labour, which requires employers to “results” by the end of the year.
In exchange of consideration in employment and investment The agreement provides for 40 billion euros in state aid over three years, funded by 50 billion economy , Michel Sapin Wednesday promised to achieve despite the economic difficulties (and contrary to what he said last week that he was keen to offset the bad effect of the announcement on the French deficit, he said, the savings on the natural progression of public spending by 21 billion euros planned for next year would be well maintained.) Since the agreement on the pact signed on March 5 by management and two unions (CFDT, CFTC), one sector has made commitments: chemistry, with 47,000 jobs created by 2017
Enough to reassure European partners. Saying “proud” of the German budget in balance by 2015, Chancellor Angela Merkel called for “strict discipline” saying that “what is good for Germany is also for Europe”. The same day, the former French finance minister 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 as those who best know the problems some countries are from these countries,” ruled Wednesday Jean-Claude Juncker, the chairman of the new Commission, citing “budgetary situation in France” …
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