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WORLD / Europe
France needs fundamental reforms like Germany - PM
(Agencies)
Updated: 2007-09-14 03:27
PARIS, Sept 13 - Prime Minister Francois Fillon said on Thursday France
should undertake long-term structural reforms like Germany if it wanted
to enjoy the same benefits of economic growth and falling unemployment as
its neighbour.
Fillon said Berlin was now seeing the fruits of "brave reforms" initiated
in 2000 -- particularly in the labour market -- and was experiencing good
economic growth, decreasing joblessness and reduced deficits.
"These results create a real challenge for France. Why can't we do as
well?" Fillon wrote in an article published on the website of Le Figaro
daily.
"The stakes go beyond the short-term. Like Germany did in past years, we
must look further and aim higher," he said.
The European Commission said this week it expected Germany, Europe's
largest economy, to grow 2.4 percent this year, compared with 1.9 percent
expected for France.
"It's not about the economic results at the end of 2007. It's about the
structural situation of the country, at the end of fundamental reforms
that we will have conducted over five years and that we are only just
starting," Fillon wrote.
Fillon said President Nicolas Sarkozy's government had launched reforms
to make the labour market more flexible, begun changes to its university
system and would pass further reforms to encourage competition and
economic growth.
He said the reforms should not worsen public finances and had to respect
European commitments on the budget deficit.
"A renovated Germany, a reformed France: That's one of the keys to
relaunch of the European project," Fillon said, adding the countries'
cooperation would help address challenges such as globalisation, climate
change, energy and space projects.
"More than ever, we have all to gain from uniting our efforts," Fillon
said. "This does not exclude, in all friendship, a frank dialogue without
taboos."
French and German media have repeatedly reported tension between Sarkozy
and German Chancellor Angela Merkel, ranging from their stand on
planemaker Airbus to budget policy and France's role in resolving a
diplomatic standoff with Libya.
French officials have rejected talk of a crisis.
"The few misunderstandings or prejudices that sometimes appear between
our two countries are nothing facing the fertility of our partnerships,"
Fillon wrote in the article.
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