Wednesday, September 10, 2014

Plan economies: France goes back to its target of 21 billion – Le Parisien

Plan economies: France goes back to its target of 21 billion – Le Parisien

<- Hard dé e: 0.04330587387085 sec -> Either the government will present its draft budget 2015 sailing on sight. Either Brussels and the International Monetary Fund (IMF) came to remind France that she could not claim both to abandon its goal of government deficit and trim along its savings targets?

it a week ago, Michel Sapin warned that $ 21 billion in savings for 2015, voted in the stability program adopted by MEPs in April, would not be possible to hold because of the weak inflation.
                 
<- hard dé e: 0.00017404556274414 sec -> Today, according to Les Echos, the government would do an about-face in deciding to maintain its original plan …

There are a few days the Finance Minister explained that “where, on an inflation rate of 1.5%, it was beyond 1 billion in savings the only gel benefits today these economies are challenged” . He added that the savings of $ 50 billion by 2017 Plan would still be respected. Understood: it will make additional efforts in 2016 and 2017

Why the turnaround? “Even if inflation is lower than expected, it can not be used as a screen to see the efforts needed on spending,” commented shaped warning Christine Lagarde, president of the IMF, in Les Echos.

In addition, this retreat will perhaps allow the government to negotiate with Brussels a further easing in reducing the deficit. Especially since Manuel Valls admitted to MPs that it would be above 4% in 2014 and 2015, far from the limits of 3% set by Brussels. “These thresholds have been set before the crisis. And today there is a new situation. We are in a potential deflation. This must be taken into account, “had found Jean-Christophe Cambadelis, the first secretary of the PS.

Meanwhile, according to Les Echos, if the government maintains its 21 billion savings, we have to find the order of 2 billion euros in new measures to effectively achieve this goal. An equation that will not be easy to solve: Already the “expense” of the draft budget for 2015 departmental component was completed in July. Under these conditions, the allocation for funding pact responsibility be reduced?

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