Latest News:  
Beijing   Sunny    -3 / -12   City Forecast

People's Daily Online>>World

Sarkozy says financial crisis subsides


08:11, January 30, 2012

PARIS, Jan. 29 (Xinhua) -- French President Nicolas Sarkozy said Sunday night that the spiraling financial crisis subsided as efforts to restore stability in the eurozone "bore fruit".

"Today, with caution, I think we can say that the elements of financial stability in the world and Europe are placed. The adopted measures had contributed to the stability," Sarkozy said in a TV interview to unveil his economic reform measures.

"The financial crisis subsides. Europe is no longer at the edge. We must now devote all our efforts to solve the economic crisis," he added.

Sarkozy's TV address came just less than three months before the French presidential elections although the incumbent president has yet officially announced his candidacy.

In a one-hour's TV interview, the French president refused to say whether he was running for presidential election scheduled for April, instead, he outlined a series of "strong" measures for fighting against unemployment and enhancing France's economic competitiveness amid a long-running eurozone crisis and what many economists believe is a mild recession in France.

Among the "strong" measure, Sarkozy announced an increase of 1.6 percent in value added sales tax (VAT) rate to stand at 21.2 percent starting from Oct. 1, aiming to reduce employers' contributions, and the creation of a 1-billion-euro (some 1.32 billion. U.S. dollars) bank to inject new blood into small and medium enterprises in February.

He also said to impose 0.1 percent tax on financial transitions for listed companies in France in August to "finance deficits."

However, the VAT reform is challenged by many critics, with a risk of inflation and the declining of purchasing power. But Sarkozy insisted that the reform will reduce labor costs and enhance competitiveness.

Analysts said an unprecedent more than one-hour live broadcast TV interview on the country's main four channels is a part of Sarkozy's implicit campaign to regain voters' confidence after a "failed policy" which fuelled unemployment and decelerate growth.


Leave your comment0 comments

  1. Name


Selections for you

  1. China's Sany to take over Putzmeister

  2. Starbucks raises coffee prices in China

  3. Job fairs held across China after festival

  4. Let's enjoy skiing in Davos, Switzerland

Most Popular


  1. A reality check on lunar new year
  2. Riding the tide of the times
  3. EP should get fully involved in EU decision making
  4. How can Europe avoid "a lost decade?"
  5. China's success here to stay
  6. Pakistan, Afghanistan set to break deadlock
  7. Bias against China human rights "deeply rooted"
  8. Are gold prices nearing end of its upward trend?
  9. Six-party talks should not be shelved
  10. Downplaying Iran nuclear issue not a good sign

What's happening in China

Cold, foggy weather hits parts of China

  1. Feasts bring famine to blood donations
  2. Local govt brags of poverty
  3. Fake food salt makers face trial in Anhui
  4. Railway fan makes ticket selling an art
  5. Starbucks raises coffee prices in China

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance