Sarkozy: new economic cycle of debt reduction begins
French President Nicolas Sarkozy said Thursday that "a new economic cycle of debt reduction was beginning" that will "return the economy to work and production."
"The cycle will be very different from the preceding one," Sarkozy said in a landmark speech on the eurozone crisis in the southern city of Toulon.
"The extravagant growth of the financial sector has placed the economy under the exclusive domination of the logic of speculation," he said.
"We know the dramatic consequences on industry, on the environment, on inequality and on lowering the value of work."
"As soon as seeking refuge in debt is no longer possible because lenders won't lend, because the immense pyramid of debts that were hidden until now by the complexity and sophistication of global finance can be seen by everyone as an enormous risk, that's when a new economic cycle begins," he said.
"The passage from a big cycle of acquiring debt to a big cycle of shedding debt would be accompanied by an adjustment that all developed countries economic policies would have to deal with."
© 2011 AFP