News / Europe

Bundesbank Chief Says France Must Take Deficit Cuts Seriously

Germany's federal reserve Bundesbank President Jens Weidmann stands beside the door of a giant safe as he poses for a photograph at the money museum next to the Bundesbank headquarters, in Frankfurt, Germany, May 17, 2013.Germany's federal reserve Bundesbank President Jens Weidmann stands beside the door of a giant safe as he poses for a photograph at the money museum next to the Bundesbank headquarters, in Frankfurt, Germany, May 17, 2013.
x
Germany's federal reserve Bundesbank President Jens Weidmann stands beside the door of a giant safe as he poses for a photograph at the money museum next to the Bundesbank headquarters, in Frankfurt, Germany, May 17, 2013.
Germany's federal reserve Bundesbank President Jens Weidmann stands beside the door of a giant safe as he poses for a photograph at the money museum next to the Bundesbank headquarters, in Frankfurt, Germany, May 17, 2013.
Reuters
France has a special responsibility as a euro zone heavyweight to take deficit reduction rules seriously, even though its budget deficit is above target, Bundesbank President Jens Weidmann said in an interview published on Sunday.

Weidmann told the Bild am Sonntag newspaper that the credibility of the new euro zone rules would be hurt if their flexibility were pushed to the limit right at the start.

“The economic developments in some countries have indeed been weaker than expected and the European rules offer in such cases a certain amount of flexibility,” Weidmann said when asked about Italy, France and Slovenia getting more time to fulfill the stability criteria.

“France, but also Germany, have a special responsibility, as heavyweights in the euro zone, to take seriously the new deficit reduction rules created last year to reduce budget deficits,” he said. Weidmann noted that France's budget deficit was still “far above 3 percent.”

“The credibility of the new rules certainly won't be enhanced if one were to exhaust and use up to a maximum the flexibility right at the start,” Weidmann told the newspaper.

“We definitely cannot allow the expectation to rise that at the end of the day the monetary policy will be able to resolve the problems,” he said.

The European Commission decided last week to give France two more years to slash its deficit to below 3 percent of gross domestic product because of the country's poor economic outlook within the recession-hit euro zone.

German Finance Minister Wolfgang Schaeuble praised France's reform efforts and said the decision to give France an additional two years to cut its deficit was “acceptable,” German regional newspaper Rheinische Post said.

“If a worsened situation means it is appropriate to extend the deadline to cut deficit to a maximum of 3 percent, that is acceptable,” Schaeuble said, according to the paper.

Schaeuble said the French government knew what it had to do and added that France was “on the right track.”

“On some points it will perhaps take longer than elsewhere,” he said, adding it should not, however, be forgotten that France's economic structure was different from those of other countries, like Germany.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid