Arab Today, arab today french government adopts \stability programme\for economy
Last Updated : GMT 21:34:00
Arab Today, arab today
Arab Today, arab today

French government adopts \'stability programme\'for economy

Arab Today, arab today

Arab Today, arab today French government adopts \'stability programme\'for economy

Paris - KUNA

The French government, meeting in cabinet session Wednesday, has adopted a new \"stability programme\" for the 2013-2017 period that aims to promote growth and rein in spending and reduce public deficits in line with European Union regulations. Prime Minister Jean-Marc Ayrault has championed the stability programme and with his key economic ministers and advisors has mapped out a strategy that will be based on \"realistic\" growth forecasts. The Cabinet approved the programme which will go to a parliamentary debate and vote next week and will then be presented to European Union officials in the EU Commission. According to the government programme, the French economy should grow by 0. 1 percent this year, a figure that is optimistic given predictions by several institutions that France would be in recession by the end of 2013. These institutions include foreign entities like the International Monetary Fund (IMF) and domestic statistics and economic analysis entities. Nonetheless, Ayrault and his government believe that France will snap out of the economic torpor at the end of this year and register Gross Domestic Product (GDP) growth of 1.2 percent in 2014 and 2.0 percent in 2015. \"The progressive strengthening of growth in France, allowing for a reversal of employment at the end of 2013, will be pushed by an improvement in the international environment - notably in Europe thanks to initiatives in support of growth and the setting up of a banking union,\" a statement from the Cabinet said. But the increasing impact of reforms by the government will also contribute to the better and more balanced economic performance on the horizon, the statement said. A host of programmes have been put in place to promote employment and invest in small and medium-sized industry and business, among other measures. But France also intends to continue to attack its structural deficit, which was reduced by 1.2 percent in 2012, having risen for several years. Further reductions are planned and the government intends to bring its public deficit down to 3.7 percent of GDP this year, below the original target of 3.0 percent, but the stability programme intends to reach this EU target level and even slightly below it in 2014. The cuts will be achieved by adjusting pension contribution payments slightly and by modest increases in social, pay-roll taxes but mostly from cutting back on public expenditures and programmes.

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Arab Today, arab today french government adopts \stability programme\for economy Arab Today, arab today french government adopts \stability programme\for economy

 



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