French Socialists pledge flexibility on EMU goals

Date: 29/05/1997

By Rory Watson

THE outcome of this weekend's French general election will give a clear indication of the strategy the country will pursue to qualify for the single currency.

As French President Jacques Chirac desperately tries to rally his supporters, the message from the first round of polling suggests voters have no appetite for the tough budgetary policies imposed by outgoing Premier Alain Juppe.

Anything short of a clear majority would inevitably force a centre-right government to trim its austerity measures and sugar the economic pill. The Socialists have made it clear they do not regard the 3&percent; limit on budget deficit as a rigid target. This was underlined by former European Commission President Jacques Delors this week, who insisted the spirit of the Maastricht Treaty was a commitment to lasting financial health rather than meeting the 3&percent; goal to the last decimal place.

The outcome of the election is not, however, expected to affect France's negotiating stance at the Intergovernmental Conference or to throw obstacles in the way of an agreement on EU treaty reform.

As the campaign entered its final days, several analysts were projecting a narrow overall majority for the left under Socialist leader Lionel Jospin.

But others warned that the outcome was still wide open as the electorate digested Juppe's dramatic resignation.