By KUNA
Brussels : Finance Ministers of the euro area are calling on France to increase efforts to cut its budget deficit as endorsed in Berlin in April last year.
Member states of the 15-member euro area had greed in Berlin to achieve budget balance by 2010 at the latest.
“France needs to reinforce its efforts to reduce debt through a rigorous application of its budget for 2008 so as to give itself sufficient room for manoeuvre in relation to the 3 percent deficit criteria,” Jean-Claude Juncker, Luxembourg Prime Minister and President of the Eurogroup, told a press conference here late Monday night.
Paris is saying that its budget deficit will fall to 2.3 percent of gross domestic product in 2008 and 1.7 percent in 2009.
At this rate, France is unlikely to achieve budget balance before 2012.
On his part, EU Commissioner for Economic and Monetary Affairs Joaquin Almunia said he expects the rise of inflation in the Eurozone to be temporary.
“But we are extremely concerned by this. We need to stay alert and remain vigilant so that inflation does not becomes a trend,” he said.
Inflation rose to a high of 3.2 percent in January because of rising oil and food prices.
Meanwhile, finance ministers of the 27-member EU are meeting here Tuesday.