PARIS (Reuters) – French core inflation turned negative in November, with the first drop in the indicator since records started in 1990 pointing to a growing deflation risk in the euro zone’s second-largest economy.
The risk of deflation has become a major headache for France and for the euro zone as a whole, heightening expectations that the European Central Bank will soon take further steps to bolster the bloc’s flagging economy.
PARIS (Reuters) – France’s government proposed a pro-growth reform bill on Wednesday that is crucial for avoiding EU sanctions but risks being watered down by left-wing lawmakers angry with President Francois Hollande’s deregulation drive.
The bill – which polls show the French themselves broadly support – aims to let shops open more often on Sundays and resolve disputes over firings more rapidly. It includes plans to deregulate the legal trade and cut red tape for construction.
PARIS (Reuters) – France’s Socialist government will propose on Wednesday a reform bill which is crucial for avoiding EU sanctions but risks being watered down by lawmakers angry with President Francois Hollande’s deregulation drive.
The bill aims to let shops open more often on Sundays and resolve disputes over firings more rapidly. It also includes plans to deregulate the legal trade and cut red tape for construction.
BRUSSELS (Reuters) – France sought on Tuesday to keep alive a disputed financial transactions tax after 18 months of talks failed to produce a deal that would force banks blamed for causing the financial crisis to help pay for the clean-up.
Having missed a self-imposed year-end deadline to agree the broad outlines of the tax among the 11 euro zone countries that back the plan, France’s Michel Sapin told other finance ministers a deal was still possible early next year.
BRUSSELS (Reuters) – Euro zone finance ministers told France and Italy on Monday to take quick steps to rein in their deficits in line with EU rules, threatening disciplinary action but also indicating some wiggle room might be given.
The ministers met to discuss draft 2015 budgets of euro zone countries, with Paris and Rome in focus because the drafts for both are at risk of breaking European Union rules. France is also facing criticism for badly missing its 2014 targets.
PARIS (Reuters) – France’s unemployment rate jumped back in the third quarter to its 2013 peak, compounding the woes of the unpopular government struggling to pull the euro zone’s second-largest economy out of stagnation.
Socialist President Francois Hollande, whose popularity has been dragged down to record lows by unemployment and earlier rounds of tax increases, said he would not run for re-election in 2017 if he failed to cut the number of jobless by then.
PARIS (Reuters) – The ECB’s monthly rate meeting will focus minds this week on the debate over quantitative easing in the euro zone, as a series of data releases on both sides of the Atlantic sheds more light on European woes and U.S. strength.
Final purchasing manager indices for Europe and the United States, U.S. monthly jobs data and the European Central Bank’s updated forecasts will all provide clues to assessing the relative health of both regions.
PARIS (Reuters) – Warning that Europe risks a “stagnation trap”, leading French and German economists proposed reforms and investments to revive growth in the euro zone’s two biggest economies, but Berlin swiftly dismissed a key proposal to boost its public investment.
Henrik Enderlein, of Germany’s Hertie School of Governance, and Jean Pisani-Ferry, head of the France Strategie government think-tank, offered an implicit trade-off between shaking up the rigid French labor market and regulated professions, and a public investment boost in creaking German infrastructure.
PARIS (Reuters) – The global economy will gradually improve over the next two years but Japan will grow less than previously expected while the euro zone struggles with stagnation and an increased deflation risk, the OECD said on Tuesday.
There will be marked divergences among countries both in terms of growth and monetary policy, leading to volatility in debt and foreign exchange markets, the Organisation for Economic Co-operation and Development said.
BERLIN/PARIS (Reuters) – Germany narrowly avoided recession in the third quarter of the year and France exceeded low expectations, putting the euro zone on course for anaemic growth but no contraction.
Europe’s largest economy eked out 0.1 percent growth from the previous three months, the German statistics office said on Friday, following a revised 0.1 percent fall in the second quarter.