Budget control must come with policy favourable to growth
14 May
French Prime Minister Francois Fillon said measures to curb and cut budget deficit throughout the eurozone must come with essential policies favourable to growth of the economy.
“This budget consolidation should be accompanied by a greater contribution of European policy for growth”, the premier’s office quoted the PM as saying.
The European Commission unveiled on Wednesday plans to better organise economic standards in the eurozone, which included measures to intensify the control and supervision of national funds.
Fillon “hopes that the concrete European project can be identified in the EU’s 2020 economic strategy, in a bid to help European enterprises to compete globally in the future”, the prime minister’s statement said.
Early in March, the commission presented a novel growth strategy called “Europe 2020”, which centres on investment in innovation and research, employment, green growth, and education.
Among the examples of the growth strategy include digital equipment and services, the need for a true industrial policy, and a better access for small and medium-sized businesses in public control.
“Europe should also, through its economic strategy, promote the states’ efforts for social inclusion and against poverty”.
The French premier emphasised that EU member states must ensure the efficient operation of the European stabilisation scheme.
“This implies a strengthened governance of the eurozone and a return to sound public finance, with monitoring mechanism reinforced and extended to macroeconomic imbalances and the competitiveness disparity”, the statement added.
The commission proposed the reinforcement of EU Stability and Growth Pact that controls the supervision of budget deficits. The EU pact necessitates national deficits below the 3% GDP limit and public debts lower than 60% of GDP.
