Forex Flash: France needs reform before markets attack – Nomura
FXstreet.com (Barcelona) - France must cut spending to meet its budget deficit target and undertake structural reforms to boost competitiveness, ECB Executive Board Member Peter Praet said on Tuesday.
Nomura Economists believe that it is important that France implements its plan of EUR 60bln public spending cuts, as initially promised by French president Hollande. According to Mr Praet, reforms are necessary to restore the countries competitiveness, as the Gallois report has already highlighted. Praets believes that if France waits until markets attack to consider reform, it will be harder to regain market confidence. Mr Praet added that the threat of countries leaving the Euro area has vanished.
Nomura Economists believe that it is important that France implements its plan of EUR 60bln public spending cuts, as initially promised by French president Hollande. According to Mr Praet, reforms are necessary to restore the countries competitiveness, as the Gallois report has already highlighted. Praets believes that if France waits until markets attack to consider reform, it will be harder to regain market confidence. Mr Praet added that the threat of countries leaving the Euro area has vanished.
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