Excessive deficit fine looms over France / France ‘not the sick child of Europe’, Valls tells Germany

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Series Details 22.09.14
Publication Date 22/09/2014
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Following the French government's announcement on the 10 September 2014 that the country would not be able to meet its deficit reduction commitments, the momentum grew amongst fellow eurozone countries to present Paris with a fine as a result of its Excessive Deficit Procedure.

Besides northern Europe's usual stance on austerity-led efforts, some southern European countries were also joining calls for more austerity in France, rejecting any sort of special treatment after they had such measures imposed in their own territories over the previous years.

French Prime Minister Manuel Valls made his first official visit to Germany on the 22 September 2014. Both sides tried to dismiss their divergence in terms of public spending and the ways to tackle economic stagnation.

Back in France, the employer group Medef suggested on 22 September 2014 that the country should scrap its 35 hour work week, raise the legal retirement age and lower the minimum wage if it hoped to bring down chronically high unemployment and stimulate growth.

In advance of presenting the 2015 budget French Finance Minister Michel Sapin said on the 1 October 2014 that France would reduce its budget deficit to below the EU threshold of 3% of GDP by 2017, two years later than promised.

Previously, France had promised EU partners it would bring its deficit below 3% by 2015, a deadline that had already been extended from 2013.

The budget for 2015 also included €21 billion of savings, a hike in the tax on diesel fuel as well as income tax cuts.

Source Link http://www.euractiv.com/sections/euro-finance/excessive-deficit-fine-looms-over-france-308598
Related Links
ESO: Background information: France to miss 2015 deficit target, says finance minister http://www.europeansources.info/record/france-to-miss-2015-deficit-target-says-finance-minister/
ESO: Background information: France's Socialist government wins confidence vote http://www.europeansources.info/record/frances-socialist-government-wins-confidence-vote/
The Local.fr, 22.09.14: France to try to convince Germany to spend again http://www.thelocal.fr/20140922/france-to-try-to-convince-germany-to-spend-again
Bloomberg, 22.09.14: Valls Takes Deficit Defiance to Merkel in Euro Conflict http://www.bloomberg.com/news/2014-09-22/valls-takes-deficit-defiance-to-merkel-in-euro-conflict.html
The New York Times, 21.09.14: Growing Imbalance Between Germany and France Strains Their Relationship http://www.nytimes.com/2014/09/22/world/europe/imbalance-between-germany-and-france-strains-relationship.html
EurActiv, 22.09.14: Germany: ‘We have no interest in humiliating the French’ http://www.euractiv.com/sections/eu-priorities-2020/germany-we-have-no-interest-humiliating-french-308602
Deutsche Welle, 22.09.14: 'Without France, Germany is on its own in Europe' http://dw.de/p/1DGTD
EurActiv, 23.09.14: German conservatives cast doubt on French reform pledges http://www.euractiv.com/sections/euro-finance/german-conservatives-cast-doubt-french-reform-pledges-308631
BBC News, 22.09.14: French PM Valls spared Merkel's thunder on Germany trip http://www.bbc.co.uk/news/blogs-eu-29317821
Euronews, 22.09.14: French PM: “We are not the sick child of Europe” http://www.euronews.com/2014/09/22/french-pm-we-are-not-the-sick-child-of-europe/
Deutsche Welle, 22.09.14: Merkel praises France's economic reform plans after Berlin talks with PM Valls http://dw.de/p/1DGu0
France24, 22.09.14: France ‘not the sick child of Europe’, Valls tells Germany http://www.france24.com/en/20140922-france-economy-not-sick-child-europe-valls-tells-germany-merkel/
EurActiv, 24.09.14: German industry calls for 'investment offensive' to boost the economy http://www.euractiv.com/sections/innovation-enterprise/german-industry-calls-investment-offensive-boost-economy-308662
EurActiv, 24.09.14: French employers call for tough job market reforms http://www.euractiv.com/sections/social-europe-jobs/french-employers-call-tough-job-market-reforms-308686
European Commission: DG Economic and Financial Affairs: EU economic governance: Corrective arm / Excessive deficit procedure http://ec.europa.eu/economy_finance/economic_governance/sgp/corrective_arm/index_en.htm
BBC News, 01.10.14: France to hit EU budget deficit target in 2017 http://www.bbc.co.uk/news/business-29438686
France24, 01.10.14: New French budget to challenge EU austerity rules http://www.france24.com/en/20141001-new-french-budget-challenge-eu-austerity-rules/
European Commission: DG Economic and Financial Affairs: EU economic governance: Country-specific procedures: France http://ec.europa.eu/economy_finance/economic_governance/sgp/deficit/countries/france_en.htm
The Local.fr, 01.10.14: Budget 2015: €21 billion savings plus tax cuts http://www.thelocal.fr/20141001/french-economy-to-recover
EUObserver, 02.10.14: France 'rejects austerity' in controversial budget http://euobserver.com/news/125848
EurActiv, 01.10.14: French deficit and public debt will reach new records in 2015 http://www.euractiv.com/sections/euro-finance/french-deficit-and-public-debt-will-reach-new-records-2015-308840
Deutsche Welle, 01.10.14: France unveils budget, ignores agreed EU deadlines http://dw.de/p/1DO5X

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