France sticking to growth forecast: minister

29th November 2011, Comments 0 comments

France is sticking to its economic growth forecast of one percent for next year despite warnings and a lower revised projection from the OECD, Budget Minister Valerie Pecresse said on Tuesday.

Asked on France 2 television if Paris would revise its growth forecast for next year after the OECD on Monday dropped its projection for France from 2.1 percent growth to 0.3 percent, Pecresse said "no".

She said that 6.0 billion euros ($7.9 billion) worth of "security margins" were in place to deal with "hazards to growth".

She said that France and Germany were working to change eurozone governance in order to impose more discipline and solidarity to fight the debt crisis.

"We are working with our German partners to propose a pact with more discipline in the eurozone: a return to budget balances, the Golden Rule (on governments borrowing only to invest and not to fund current spending) ... and at the same time more solidarity in the eurozone, with stronger institutions ... that could intervene in a more efficient way," she said.

The Organisation for Economic Cooperation and Development warned on Monday that top global economies are one step from a deep recession driven by the eurozone debt crisis and a fiscal stranglehold in the United States.

Recession and even depression could spread through advanced economies if the crisis takes another sharp turn for the worse, the OECD said.

© 2011 AFP

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