PARIS (MNI) – The French government confirmed Wednesday that it
aims to bring public finances into balance by 2016, assuming that
economic growth will be above potential after 2013.
Without surprise, the multi-year Stability Program for submission
to European Union authorities is very close to the fiscal platform of
President Nicolas Sarkozy in his campaign for re-election, with two
thirds of the E115 billion in consolidation measures on the spending
side and one third coming from higher revenues.
“Our effort is concentrated on reducing spending via reforms,”
stressed Budget Minister Valerie Pecresse in presenting the program to
the Finance Committee of the National Assembly.
With the first round of the presidential elections less than two
weeks away, the debate between committee members of the governing
center-right party and those of the leftist opposition was particularly
intense, echoing the punches exchanged among the leading candidates.
“Who can believe you will reduce the deficit when you’ve let it
rise over the past five years?” demanded Socialist committee member
Pierre-Alain Muet, citing the rise in the structural shortfall —
excluding effects of the crisis — since 2007.
Finance Minister Francois Baroin underscored the need to stick to
the fiscal trajectory after the elections, citing the latest pressures
on Spain as an example of the persisting fragility of financial markets,
despite the massive liquidity injected by European Central Bank.
Any deviation from the deficit targets would pose a “serious risk”
for France, he warned.
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