French tax hikes would ‘destroy’ growth, EU says

Report of an interview by Olli Rehn, European Commissioner for Economic and Monetary Affairs in August 2013 to the French weekly Le Journal du Dimanche.

He said that new measures to reduce France's budget deficit must come from public spending cuts, warning that any new taxes would 'destroy growth and handicap the creation of jobs'.

On the 15 October 2013, the French National Assembly's finance committee green-lighted an amendment to the country's draft 2014 budget law, significantly increasing the amount of aid funds that can be generated from the upcoming financial transactions tax (FTT).

Other features listed as related urls discuss the rising budget deficit in France and the prospects for the 2014 budget.

• Primary Source

ESO: Background information: French Minister accuses Barroso of fuelling the far-right http://www.europeansources.info/record/french-minister-accuses-barroso-of-fuelling-the-far-right/

ESO: Background Information: France must cut spending and reform pensions, says EU http://www.europeansources.info/record/france-must-cut-spending-and-reform-pensions-says-eu/

Le Journal du Dimanche, 26.08.13: Tax: warning from Brussels (via PressEurop) http://www.presseurop.eu/en/content/news-brief/4085191-tax-warning-brussels

Euro|Topics, 26.09.13: Record public debt in France http://www.eurotopics.net/en/home/presseschau/aeltere/NEWSLETTER-2013-09-26-Record-public-debt-in-France

European Commission: RAPID: SPEECH/13/756: Point presse du Vice-Président Olli Rehn et de M. Pierre Moscovici, Ministre de l'Economie et des Finances français http://europa.eu/rapid/press-release_SPEECH-13-756_en.htm

BBC News, 25.09.13: France public debt to hit record in 2014 http://www.bbc.co.uk/news/business-24240869

The Local.fr, 26.09.13: French Budget 2014: How are you affected? http://www.thelocal.fr/20130925/french-budget-2014-what-matters-to-you

EurActiv, 17.10.13: French bid to boost aid by taxing finance stirs hornets nest http://www.euractiv.com/euro-finance/amendment-irritates-french-finan-news-531119

---