President Francois Hollande’s government is preparing to introduce changes to French economic policy to spur growth, Finance Minister Pierre Moscovici told Le Journal du Dimanche in an interview.
“The competitiveness of our economy is one of the subjects I’m focusing on,” Moscovici was quoted as saying by the newspaper. “We want policies that favor enterprise and investment, notably through the public investment bank. Structural reforms particular to France will boost growth,” he said.
The remarks underline the pressure Hollande’s government faces to generate growth after the French economy failed to expand for three straight quarters. Hollande will reassess the government’s 2013 growth target of 1.2 percent in coming weeks, Le Journal du Dimanche said.
“Once we manage to revive momentum in Europe and in France, we have a real potential for growth in 2013,” Moscovici said.
Moscovici also said the government won’t ease its deficit targets because that would risk increasing borrowing costs. “France is borrowing at very low rates, sometimes even negative rates,” Moscovici said. “Any sign of flinching will be sanctioned, which will increase borrowing costs.”