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BCN-15
FRANCE-GERMANY-EU-BUDGET
France urges Germany to step up eurozone investments
STRASBOURG, France, Sept 7, 2019 (BSS/AFP) – France’s finance minister
reiterated his call Friday for Germany and other eurozone states running
budget surpluses to step up investments in the bloc to counter economic
sluggishness “that’s bad for everyone.”
“Countries whose budgets offer room for manoeuvre, in particular Germany,
should invest more. It’s in Germany’s interest,” Bruno Le Maire said while
attending a fair in the eastern city of Strasbourg which lies close to the
German border.
“What’s the point of having public accounts perfectly in order, if our
growth is slowing… if your European neighbours can’t benefit from your
growth and economic dynamism?” Le Maire said.
French officials — as well as the International Monetary Fund — have for
months been urging Berlin to loosen its purse strings to help foster a broad
revival on the Continent.
Germany had a budget surplus of 58 billion euros ($64 billion) in 2018,
according to its statistics office, its fifth straight year without a
deficit.
But German officials say they are already spending heavily, and are loath
to abandon a cherished fiscal discipline while other eurozone members have
made little headway in tackling their deficits.
Le Maire’s comments come ahead of a summit of eurozone finance ministers
in Helsinki next Friday, when France will propose a “eurozone growth pact”
aimed at bolstering flagging economies across the bloc.
“We need more innovation, more investment and more growth in the euro
zone, to meet economic challenges but also the political challenge of
populist surges across Europe,” he said.
“We will keep on proposing solutions for this European economic
sluggishness that’s bad for everyone.”
Le Maire also repeated a pledge by French President Emmanuel Macron to get
France’s own finances back in order, by cutting government spending,
overhauling labour rules and tax reforms aimed at encouraging hiring and
investment.
BSS/AFP/HR/1030