Deficit: the pressure on France unabated – BBC

Deficit: the pressure on France unabated – BBC

The European Commissioner for Economic Affairs, Pierre Moscovici, now expects growth to 1% this year and a public deficit to 4.1% for France.

While acknowledging that they are” too fragile “, Francois Hollande ensures that the results are felt on the economic front. Growth, investment, deficit … For the head of state, things are a little better, thanks to the economic policy implemented since the beginning of the quinquennium. After competitive employment tax credit (CICE), the responsibility Pact, Macron Act, “we must go further,” said he said during his press conference, citing “reforms that should concern the youth employment, the integration of long-term unemployed, the performance of our businesses, the financing of our economy. ” And “! Our policy is decided in Paris, not in Brussels,” he blurted, during his speaking

The thinking was obviously not trivial. At the moment even when Holland was holding his press conference, the European Commissioner for Economic Affairs, Pierre Moscovici, presented the winter forecast of the institution in Brussels. His screenplay for France now expects growth to 1% this year and a public deficit to 4.1%. But when asked about this during his press conference, the head of state has preferred dodge …

Within the executive, was seen as good news the 2015 scenario developed by the European Commission. Is it not now in line with that adopted by Bercy? Brussels forecasts are they not slightly better than those of there three months? See things going in the right direction, it is rare enough that it is not tasty …

“France is aware of its responsibilities”

But it would forget too quickly that this movement was generally to all European countries. The “alignment of the stars” oil-Euro-rates, as called François Hollande, first benefited the entire euro zone. And it would be especially remembered that the scenario of the Commission only validates the failure of France to the front of public finances. No one had the slightest doubt of course, but France does not fulfill its commitment to bring its deficit below the 3% of GDP this year. And 2016 should not give stripes in the Hexagon: although she argues unchanged policy (that is to say, regardless of potential new reforms or savings), the Commission expects that France is the only country European to see the deficit exceed 4% of GDP.

Reason, Pierre Moscovici had no other choice Thursday that maintain pressure on the country he was finance minister there still little. The Commission considers in particular that the effort to reduce the French deficit for 2015 reached only 0.3 percentage point of GDP in structural terms (ie without considering the vagaries of the economy) or “significantly below minimum effort “required by the Community rules, which is 0.5 points. In short, “additional measures will be needed to fill this gap,” did not hesitate to say Moscovici. It is a new deadline to enter the nails of the Stability Pact – time which should be formalized on 27 February, when Brussels will give its verdict on the multi-annual programs for public finances. – Is at stake

So even if “our policy is decided in Paris, not in Brussels,” France had no choice but to answer it would abide by the rules it itself helped develop. Michel Sapin explaining itself, through a statement that “France is aware of its responsibilities and honor its commitments.” How? Bercy gives no answer … I must say that this small difference of 0.2 percentage point of GDP mentioned by the Commission is not less than 4 billion effort. For now, Bercy has planned 21 billion euros in savings this year … and has no plans to add more!