PARIS (MNI) – French Finance Minister Christine Lagarde underscored
Tuesday the “total determination” of her government to reduce the public
deficit from 8% this year to 6% next year and to 3% by 2013.
These targets will be met “whatever the circumstances” even if
further efforts are needed on the spending side, the minister told a
Europlace conference here.
After four straight quarters of recovery, Lagarde noted “positive
signs” for a further expansion notably the stabilization of the
unemployment rate, an upturn in jobs in 1Q, a rise in overtime hours and
the decline of the euro, especially against the dollar.
“This decline in the euro in recent months is a serious competitive
advantage for a number of our exporters,” she said.
The government intends to introduce a banking tax in the budget for
next year that would apply to “risk-weighted assets,” she said. “It is
legitimate that banks carry the cost” for financial stability and not
the taxpayer.
Lagarde said she had “no worries” about the results of bank tests
for the entire French banking system.
–Paris newsroom +331 4271 5540; stephen@marketnews.com
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