Budget control should come with growth-favorable policy: Fillon

08:57, May 13, 2010      

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Measures to control and reduce budget deficit across the eurozone should come along with necessary policies favorable to economic growth, French Prime Minister Francois Fillon said on Wednesday.

"This budget consolidation should be accompanied by a greater contribution of European policy for growth," Fillon's office quoted the prime minister as saying in a statement issued after the European ministerial meeting in Brussels.

The European Commission on Wednesday unveiled proposals to better coordinate economic polices in the eurozone, including measures to strengthen the supervision and control of national budgets.

The French premier "hopes that the concrete European project can be identified in the EU's 2020 economic strategy, in a bid to help European enterprises to compete globally in the future," the statement said.

In early March, the European Commission presented a new growth strategy, dubbed "Europe 2020," which focuses on investment in research and innovation, green growth as well as education and employment.

"The clean vehicles and digital equipment and services were cited as examples, with the necessity of a real industrial policy and improved access for SMEs (small and medium-sized enterprises) in public control," the statement said, referring to the growth strategy.

"Europe should also, through its economic strategy, promote the states' efforts for social inclusion and against poverty," the statement added.

The French prime minister pointed out that euro area members should "ensure the smooth working of the European stabilization plan."

"This implies a strengthened governance of the eurozone and a return to sound public finance, with monitoring mechanism reinforced and extended to macroeconomic imbalances and the competitiveness disparity," Fillon added.

The European Commission on Wednesday proposed to reinforce the EU Stability and Growth Pact, which regulates the supervision of deficits. The Pact requires national deficits below the limit of 3 percent of gross domestic product and public debts below 60 percent of GDP.

Source: Xinhua
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