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Jun 21, 2012

France’s Socialists prepare 2013 spending cuts

PARIS, June 21 (Reuters) – France’s Socialists plan
unpopular welfare and civil service job cuts next year in an
effort to trim up to 30 billion euros from the deficit,
calculating that tax rises on the rich will convince the less
well off to accept their share of the pain.

President Francois Hollande won election last month
promising to rescue the nation’s finances and persuade a
sceptical Germany that growth, not austerity, was the key to
reviving the troubled euro zone’s economy.

Jun 18, 2012

French Socialists eye tax rises after big poll win

PARIS (Reuters) – France’s Socialists vowed on Monday to use a resounding victory in weekend parliamentary elections to pursue President Francois Hollande’s drive for growth in Europe while sticking to promises to cut the budget deficit, mostly through taxation increases.

Hollande will use a special session of parliament next month to whittle down France’s numerous tax exemptions and pass tax rises for large corporations, especially banks and energy firms, in a bid to cut the deficit to within the European Union’s 3 percent limit by next year despite a stagnant economy.

Jun 18, 2012

French Socialists vow reforms after big poll win

PARIS (Reuters) – A resounding Socialist victory in weekend parliamentary elections will allow President Francois Hollande to press ahead with reforms to tame France’s deficit and promote economic growth in Europe, a senior minister said on Monday.

The Socialists, who won a comfortable majority in Sunday’s parliamentary elections, will use a special session of parliament next month to axe tax breaks and increase taxes for large corporations, particularly banks and energy companies.

Jun 17, 2012

Socialists on track for majority in French vote

PARIS (Reuters) – France voted in a parliamentary run-off on Sunday expected to hand President Francois Hollande’s Socialist party a majority and strengthen his position in legislative battles over euro zone crisis policy.

A clear majority reliant neither on opposition conservatives nor eurosceptic hard leftists, as opinion polls suggest, would be a boon as Hollande prepares legislation to raise taxes, adjust budget spending and ratify an EU fiscal discipline pact.

Jun 15, 2012

With Europe on edge, France and Germany squabble

BERLIN/PARIS (Reuters) – Germany’s Angela Merkel criticised France’s economic performance on Friday in a war of words with its new Socialist president, Francois Hollande, over how to tackle Europe’s deepening debt crisis ahead of a pivotal election in Greece.

Describing her own country as Europe’s “stabilising anchor and growth engine”, the centre-right chancellor told German business leaders that Europe should talk about the growing gap between the bloc’s two biggest economies.

Jun 15, 2012

As Europe tensions rise, French and German leaders clash

BERLIN/PARIS, June 15 (Reuters) – Germany’s Angela Merkel
criticised France’s economic performance on Friday in a war of
words with its new Socialist President Francois Hollande over
how to tackle Europe’s deepening debt crisis ahead of a pivotal
election in Greece.

Describing her own country as Europe’s “stabilising anchor
and growth engine”, the centre-right chancellor told German
business leaders that Europe should talk about the growing gap
between the bloc’s two biggest economies and traditional allies.

Jun 13, 2012

France backs stronger ECB role in bank surveillance

PARIS (Reuters) – France wants the European Central Bank to have a stronger role in overseeing banks in the single currency bloc as part of a package of urgent reforms to increase financial stability in Europe, sources said on Wednesday.

Joint supervision of banks is one of the key issues to be discussed at a European Union leaders summit in late June that will focus on deepening financial and fiscal integration to bring the raging euro zone crisis under control.

Jun 13, 2012

France eyeing aid for car sector- industry minister

PARIS, June 13 (Reuters) – France’s Socialist government is
studying the possibility of providing further state aid to its
struggling automobile sector as part of a broader push to shield
its declining industries from job losses and a wave of factory
closures.

In a bid to foster a greater sense of morality in the
economy, the government announced the appointment of regional
representatives to address “economic emergencies” and a salary
cap of 450,000 euros ($560,600) for chief executives of
public-controlled firms.

Jun 10, 2012

Left eyes control of parliament as France votes

PARIS (Reuters) – France voted on Sunday in the first round of an election tipped to give the left control of parliament and consolidate President Francois Hollande’s grip on power as he seeks to steer the country through Europe’s debt crisis.

At stake in the vote for the 577-seat National Assembly, the lower house of parliament, is the new Socialist leader’s ability to rule unfettered as he prepares budget adjustments in Europe’s second-biggest economy, including possible spending cuts.

Jun 6, 2012

ESM Spain aid would mean bank supervision- France

PARIS (Reuters) – The use of the euro zone’s future ESM rescue fund to directly recapitalise struggling Spanish banks would mean imposing conditionality in terms of banking supervision, not economic reforms, French Finance Minister Pierre Moscovici said on Wednesday.

Moscovici, who is due to meet his Spanish counterpart Luis de Guindos later on Wednesday, said the euro zone’s existing EFSF bailout fund could also be used if aid were urgently required in the short term, before the ESM takes effect later this year.