By Yali N’Diaye

WASHINGTON (MNI) – French Finance Minister Francois Baroin Friday
said there is no need to implement a different strategy than the one
decided in July by EMU leaders to ensure the stability of public
finances in the Eurozone, the “epicenter” of the current crisis.

During a press conference following the G20 Ministerial Meeting on
Development, Baroin reaffirmed France’s intent to implement the tax on
financial transactions.

On Thursday, the G20 finance ministers and central bankers issued a
communique stating they “are taking strong actions to maintain financial
stability, restore confidence and support growth. In Europe, euro area
countries have taken major actions to ensure the sustainability of
public finances, and are implementing the decisions taken by Euro area
Leaders on 21 July 2011.”

Baroin declined to elaborate on what those “actions” are.

Instead, he said, Thursday’s communique was “important” and
“powerful,” and it “defines the Eurozone strategy:” the one that was
decided in July.

“So we have a method, a strategy, a calendar,” he said, and this is
what EMU members intend to follow.

“We are implementing measures aiming at stabilizing the area and
coordinate an action” to achieve “a strong, stable, sustainable and
balanced growth,” he said, expressing his disappointment that questions
were not more about development, the topic du jour.

While some observers are criticizing the Eurozone for not acting
faster or with stronger initiatives, Baroin argued that considering an
alternative strategy without even having implemented the one that has
been agreed on does not make sense.

He underlined that “We are hand in hand with Germany” on that front
and “it’s this strategy that has to work” according to national
parliamentary calendars.

“For the strategy to be efficient, it must first be implemented,”
he said, which is not the case today.

So at this stage, he closed the door to any alternative path.

As to coordination, “it is obvious that the answer is collective,”
Baroin said.

Turning to development issues, Baroin said the G20 is focused on a
“strong, balanced and sustainable growth,” and wants to involve
developing countries in the work on sustainable growth.

He also stressed the need to follow the priorities of the G20
presidency, especially the reduction of commodity price and capital flow
volatility through an approach that takes into account the needs of
developing countries as well as their specificities.

The meeting on development also focused on innovative financing
such as the tax on financial transactions.

“Tonight nobody can say that a tax on financial transactions,”
Baroin said, “is not technically feasible,” as the G20 is moving forward
on the “technical coherence” of the project.

During the joint press conference, Henri de Raincourt, the
Cooperation minister, added that while there are legitimate questions
about the modalities of the tax, those have to be addressed at a later
stage.

First, he said, the political decision to implement such a tax must
be taken.

** Market News International Washington Bureau: 202-371-2121 **

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