BERLIN: European Central Bank (ECB) executive board member Joerg Asmussen said on Friday that France needed to bring its budget deficit back down to within 3 percent of its gross domestic product (GDP) this year.
Speaking two days after France's prime minister said the country would miss that target, Asmussen said he believed Paris and Berlin "as the core of the euro zone, have a special responsibility both for the stability of the currency and for upholding the (EU) stability and growth pact."
"I personally think it is very important that France keeps its deficit below 3 percent this year," Asmussen told Germany's Deutschlandfunk radio, adding that Germany and France needed to set an example to other EU states.
French Prime Minister Jean-Marc Ayrault said on Wednesday an economic slowdown meant France would fail to cut its public deficit from 4.5 percent of output in 2012 to 3 percent - which is the official EU ceiling - in 2013.
On Thursday Olli Rehn, the EU's top economic official told finance ministers euro zone countries could have extra time to meet deficit-cutting goals if the growth outlook deteriorates.
Asmussen also said the ECB wanted currency exchange rates to remain market-orientated.
"In the last couple of days the Group of Seven biggest industrial nations made clear once again that currency exchange rates should be market-based and that we have no exchange rate targets and that's true for us at the ECB too," he said.
indiatimes.com
Speaking two days after France's prime minister said the country would miss that target, Asmussen said he believed Paris and Berlin "as the core of the euro zone, have a special responsibility both for the stability of the currency and for upholding the (EU) stability and growth pact."
"I personally think it is very important that France keeps its deficit below 3 percent this year," Asmussen told Germany's Deutschlandfunk radio, adding that Germany and France needed to set an example to other EU states.
French Prime Minister Jean-Marc Ayrault said on Wednesday an economic slowdown meant France would fail to cut its public deficit from 4.5 percent of output in 2012 to 3 percent - which is the official EU ceiling - in 2013.
On Thursday Olli Rehn, the EU's top economic official told finance ministers euro zone countries could have extra time to meet deficit-cutting goals if the growth outlook deteriorates.
Asmussen also said the ECB wanted currency exchange rates to remain market-orientated.
"In the last couple of days the Group of Seven biggest industrial nations made clear once again that currency exchange rates should be market-based and that we have no exchange rate targets and that's true for us at the ECB too," he said.
indiatimes.com
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