While acknowledging the reforms started in France in the last 12 months, the Commission advised the government to carry out this process hand in hand with budgetary consolidation.
Article created 28 May 2008
Commission recommendation providing advice on France's economic and budgetary policy
This dual approach will allow for a rise in the country's growth potential and will reverse the building up of the national debt since the early nineties.
This is economic and budgetary policy advice for France, the principle of which is provided for in the 2005 revision of the Stability and Growth Pact agreed by all European Union countries.
"France has started an impressive number of reforms over the last year which were long due and, if continued, should contribute to increasing the country's growth potential, leading to a continued reduction of unemployment through the creation of more and better jobs. However, this process needs to be accompanied by a renewal of the budgetary consolidation that came to a halt in 2007 leaving no room for manoeuvre. Only by moving towards balanced budgets can the public debt be reduced and budgetary resources be freed up for growth-enhancing measures. I hope that budgetary consolidation and structural reforms will go hand in hand, " said Joaquin Almunia, Economic and Monetary Affairs Commissioner.