The president of Germanyâ„¢s central bank Deutsche Bundesbank has urged France to take the newly imposed eurozone deficit reduction rules seriously.
In an interview published Sunday by German newspaper Bild am Sonntag, Jens Weidmann said the credibility of the new eurozone decrees could be damaged if the member states were to push its flexibility to the limit.
Å“The economic developments in some countries have indeed been weaker than expected and the European rules offer in such cases a certain amount of flexibility,” Weidmann stated.
He was referring to a decision by the European Commission last week that allowed Italy, France and Slovenia an extension of two years to cut the budget deficit to under the limit of three percent of the gross domestic product.
Å“The credibility of the new rules certainly wonâ„¢t be enhanced if one were to exhaust and use up to a maximum the flexibility right at the start,” the Bundesbank president said.
German Finance Minister Wolfgang Schaeuble has said that the decision to give France an extension of two years was Å“acceptable.” He has also stated that Paris knows what to do to cut its deficit.
The French National Institute of Statistics and Economic Studies (INSEE) announced on May 15 that the country was suffering from recession since its gross domestic product fell for the second quarter in a row.
Europe plunged into a financial crisis in early 2008. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms.
CAH/HSN
This article originally appeared on : Press TV