Wednesday, May 29, 2013

Brussels steps up pressure on Hollande

Brussels has cranked up the rising pressure on President François Hollande to take bold action to revive the French economy, calling for new pension and labour market reforms.

“Our message to France is a very demanding message of putting a great accent on structural reforms that are needed. I think there is a growing consensus in France for those reforms,” said José Manuel Barroso, head of the European Commission, the EU’s executive body.

The commission’s list of recommendations for Paris, which it expects to be delivered in return for allowing France two extra years to meet its budget deficit targets, covered all the hard issues the socialist government faces: cutting public spending; restoring badly diminished competitiveness, opening up restricted markets, reforming the tax regime and loosening tight labour market regulations.