Tuesday, October 7, 2014

Michel Sapin denies Brussels the power to reject the budget – Capital.fr

Michel Sapin denies Brussels the power to reject the budget – Capital.fr

The French finance minister Tuesday challenged the authority of the European Commission to reject the budget of France, the draft budget law for 2015 is under high surveillance authorities in Brussels.

Questioned RTL, Michel Sapin said it was no question for France to make more money in 2015 than the 21 billion already provided, or raise taxes to reduce deficits.

He was reacting to information sources that the European Commission is preparing to reject by the end of the draft budget presented last week at the French cabinet.

According to the daily Le Figaro, it could ask France an additional fiscal effort of eight billion euros in the form of savings or taxes, to reduce the French structural deficit by 0.5 points instead of 0, 2 points announced by the Ministry of Finance for 2015.

The information is “incorrect,” replied Michel Sapin, according to which “it is not within the powers of the Commission” to censor the budget a

member state of the European Union.

“It can not censor, it can not reject nor French budget or no budget,” he said. “Fortunately, in our democracies, the only place where we adopt, which we reject, where censorship, it is the parliaments of each country.”

He admitted there would be “discussions among each other” between mid-October and mid-November in the euro zone. But asked to say whether it would actually save money or France or additional taxes in 2015, he replied: “Of course.”

“You can imagine we add more savings to these 21 billion in savings that are already difficult, which already respond? ” Has he added. “And when we start lowering taxes, do you think we will go and say now, finally they are going to increase No, it would be inconsistent.”

NEW TRACK

In an interview with Le Figaro, the Secretary of State for the Budget said for his part that the French economy, with growth failure, do “not allow further reduce spending next year or to raise taxes” .

“We explain to our European partners, even if the current situation, marked by the end of the mandate of the Barroso Commission, does not make things any easier,” said Christian Eckert.

Michel Sapin RTL reiterated the position of Paris: the fundamental issue, he said, is how to get out of Europe, not just France, whose current growth and inflation low.

The draft 2015 budget of France returns the background recovery of public accounts to bolster the government priority: maintain growth and curb rising unemployment, costly politically

.

The reduction of public deficits to 3% of GDP and returned to 2017 instead of 2015.

Despite the 21 billion savings programmed on state spending, social administrations and local communities, these deficits should still reach next year 4.3% of GDP, from 4.4% this year, according to government forecasts.

However, the High Council of Public Finance estimates that compliance with the new path is not acquired because the macroeconomic scenario is based on assumptions too favorable.

(Emmanuel Jarry, edited by Marc Joanny)

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