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Sarkozy to clash with eurozone financial ministers over deficit |
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09:40, July 10, 2007 |
French President Nicolas Sarkozy is set to clash with financial ministers from the eurozone over deficit and appreciation of the single currency on Monday.
In an exceptional move, the newly elected head of state will be present as financial ministers from 13 member states adopting the same currency kicks off a regular meeting here on Monday evening.
Sarkozy wants to make his case for putting off a deadline by which his government has promised to balance government budget, a request unlikely to be supported by other eurozone members.
The new French government planned to stimulate the national economy with a series of tax cuts, but the move might reduce the government revenue in the short term and expand the already decreasing deficit.
Under EU rules, eurozone members have to keep their budget deficit under the ceiling of 3.0 percent of their gross domestic products (GDP). And they undertook in April to realize balance of budget by 2010.
However, French Prime Minister Francois Fillon said last week France would not achieve that goal until 2012, incurring criticism from the European Union's Portuguese presidency and the European Central Bank (ECB).
In addition, Sarkozy will also push for more "economic governance" for the eurozone, aimed at giving more say to the eurozone financial ministers on the monetary policy, which is currently under the charge of the ECB.
France is critical of the ECB's approach of basing its decision to raise interest rate on inflation pressure. The continuous raise of interest rates has helped the appreciation of the euro, which France said has hurt its exports.
Source: Xinhua
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