french central bank urges government to cut spending
Last Updated : GMT 09:01:24
Arab Today, arab today
Arab Today, arab today

French central bank urges government to cut spending

Arab Today, arab today

Arab Today, arab today French central bank urges government to cut spending

Paris - AFP

The French central bank waded into troubled and highly controversial waters on Tuesday, urging the government to cut spending and avoid raising taxes further. The head of the central bank, Christian Noyer, issued his admonishment in a letter a day before the European Commission states its view of the performance and outlook for reforms of EU economies. The Commission is widely expected to press France to do more, and quickly, to restructure its public finances and economy. France, together with Germany, is one of the two main pillars of the eurozone. Noyer, who also sits on the monetary policy council at the European Central Bank, urged the government to set about cutting the number of people with public-sector, civil servant status, and he defended the line taken by EU bodies demanding radical action to correct public finances. In a letter to President Hollande and to the presidents of the Senate and the National Assembly, Noyer declared: \"To achieve the announced targets, it is now necessary to concentrate efforts on public spending, given the high level of tax pressure attained and the impossibility of increasing charges on businesses without worsening activity and employment further.\" Noyer said he expected growth of the French economy to be \"close to zero\" this year. The ECB, together with the Commission and the International Monetary Fund, forms the \"Troika\" of auditors which ensures that those countries which have received bailout help apply radical reforms in order to qualify for each slice of funding. France is not among the countries rescued and is able to borrow at exceptionally low interest rates, but there is concern, notably in Germany, about the pace of reform in France. In a reference to what are commonly termed austerity policies, Noyer said that those who objected to what they considered \"excessive constraints\" had got it wrong and had an \"erroneous\" vision of the situation. He said: \"If rules for European discipline exist, it is because they are necessary for the cohesion and the balance of the eurozone. At the beginning of May, the European Commission granted France en extra two years, until 2015, to reduce its public deficit to within the ceiling limit of 3.0 percent of gross domestic product. But this was on condition that the government push ahead with structural reforms to raise efficiency. Such talk is anathema to forces on the left in the majority supporting the Socialist-Green government elected a year ago. On one area of particular sensitivity, the length of contributions to pension systems and the retirement age, Noyer urged the government to undertake \"wide-ranging\" reforms to bolster the pension budgets, which are heading into big deficits. On a recent visit to Germany, Hollande praised the courage of reforms by a previous, Social Democratic government in Germany, widely credited with putting the German economy in its relatively strong position today. An increase of pension contributions, or of the retirement age, appeared \"ineluctable\", Noyer warned. Regarding social welfare spending overall, he said that temporary or partial action not to increase allowances in line with inflation could be justified. Noyer, who himself is in the midst of restructuring the central bank, said that there should be a drive at every level of public administration in France to increase productivity and to apply a \"shock\" to simply administration, as President Francois Hollande has promised. The objective should be to to do away with \"multiple layers of structures\" so as to gain in terms of efficiency and to save money. \"Therefore the strategic long-term objective must be a trend of reducing the number of civil servants which is very high in France with regard to comparable countries,\" he said. Noyer\'s remarks come after a recent report by the prestigious public audit office, chaired by a Socialist, found that a main plank of the government\'s policy, the recruitment of 60,000 teachers, went in the wrong direction and that the focus should be on reforming the education system and getting value for money.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french central bank urges government to cut spending french central bank urges government to cut spending

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french central bank urges government to cut spending french central bank urges government to cut spending

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday