| Author (Person) | Robert, Aline |
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| Series Title | EurActiv |
| Series Details | 22.09.14 |
| Publication Date | 22/09/2014 |
| Content Type | News |
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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. |
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| Source Link | Link to Main Source http://www.euractiv.com/sections/euro-finance/excessive-deficit-fine-looms-over-france-308598 |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe, France |
