Sunday

28th May 2023

Hollande sees his calls for 'growth pact' vindicated

  • Francois Hollande has so far been snubbed by Germany's Angela Merkel (Photo: Francois Hollande)

French Socialist candidate Francois Hollande has reaffirmed his intention to re-open the treaty on fiscal discipline to include a "growth pact" and said his stance is gaining support.

The frontrunner in the French presidential elections said in a press conference on Wednesday (25 April) that if elected, he would send a letter to other EU leaders proposing a "growth pact" to be added to the existing treaty on tight budget rules.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

“Budgetary responsibility? Yes. Austerity for life? No," he said, explaining that his pact would include a financial transaction tax and eurobonds - two ideas that so far have failed to get the backing of all member states.

Eurobonds, which would virtually mutualise debt across the eurozone, is strongly opposed in Germany.

Hollande pointed to remarks earlier on Wednesday by European Central Bank chief Mario Draghi, who said a "growth compact" was the most "present" thing on his mind.

"The fact that the ECB president has also added his voice to others' confirms that the commitment I have made will make the French election a decisive moment for Europe," the Socialist candidate said, adding that he believed many other leaders are waiting for the outcome of the French elections to "open up a new discussion."

“Germany must understand that it is growth that will allow us to resolve a large share of the problems,” he said with Berlin's austerity-dominated thinking the main force behind the fiscal compact.

But Hollande also noted that budgetary discipline is important and said he was committed to bringing down France's deficit to three percent of its gross domestic product by 2013.

Meanwhile, Germany Chancellor Angela Merkel, speaking at a conference hosted by the Christian Democrats, agreed that growth is "also needed", but had an entirely different interpretation of Draghi's words.

"Growth in the form of sustainable initiatives, not just economic stimulus that simply increases sovereign debt, but rather growth in the form as expressed today by the president of the European Central Bank, Mario Draghi, in the form of structural reforms."

Merkel has so far snubbed Hollande by refusing to meet him ahead of the 6 May elections, while openly supporting the incumbent Nicolas Sarkozy, who also hails from the centre-right.

EU officials in Brussels expect that if Hollande were to win, an 'annex' could be attached to the fiscal discipline treaty mentioning growth. But changes to the European Central Bank statute or eurobonds are far less likely to happen any time soon.

Sarkozy and Hollande gear up for minutely-planned TV duel

French voters are set for some highly charged political viewing on Wednesday as Nicolas Sarkozy and Francois Hollande have their one and only TV debate during what has become dirty campaign for the presidency.

Hollande makes low-key debut on EU stage

France's president-elect has made a low-key debut on the EU stage in talks with EU Council chief Herman Van Rompuy and Irish leader Enda Kenny.

EU: national energy price-spike measures should end this year

"If energy prices increase again and support cannot be fully discontinued, targeted policies to support vulnerable households and companies — rather than wide and less effective support policies — will remain crucial," the commission said in its assessment.

Opinion

EU export credits insure decades of fossil-fuel in Mozambique

European governments are phasing out fossil fuels at home, but continuing their financial support for fossil mega-projects abroad. This is despite the EU agreeing last year to decarbonise export credits — insurance on risky non-EU projects provided with public money.

Latest News

  1. How the EU's money for waste went to waste in Lebanon
  2. EU criminal complicity in Libya needs recognition, says expert
  3. Europe's missing mails
  4. MEPs to urge block on Hungary taking EU presidency in 2024
  5. PFAS 'forever chemicals' cost society €16 trillion a year
  6. EU will 'react as appropriate' to Russian nukes in Belarus
  7. The EU needs to foster tech — not just regulate it
  8. EU: national energy price-spike measures should end this year

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Join EUobserver

Support quality EU news

Join us