EC Asks France to Reduce Public Debt

By Prensa Latina,

Brussels : The European Commission warned Wednesday on the need that France should work more to reduce its public debt and foster a long-term economic growth.


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EC also urged the European Finance Ministers to demand France to make efforts for this goal, just like other European Union member countries did recently, by using fiscal benefits to eliminate budget deficits.

France is the EU second member country regarding a low economic activity, said analysts.

That is why French President Nicolas Sarkozy has asked for special treatment and applies tax cuts and other measures to create jobs.

However, EU economic sector head Joaquin Almunia said they need to continue with their debt reduction policies, stopped in 2007, and make a balance of their budgets.

Experts considered the EC report on the French economy was sceptical on Sarkozy´s plans to open the working market and increase competition between products and services.

According to the report, the French public debt has suffered since 1992, going from less than 40 percent of the Gross Domestic Product to 64 percent in 2007.

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