Worried about deflation, Manuel Valls provides a hard return – The World

Worried about deflation, Manuel Valls provides a hard return – The World

The season will be “difficult on economic conditions .” The Prime Minister, Manuel Valls, expressed concern Friday 1 ^st August, risk “real” of deflation in Europe. Thursday, Eurostat announced that the prices changed to their lowest level since October 2009. Inflation is indeed fell to 0.4% in the euro area in July after 0.5% in June.

At the end of the seminar the executive at the Elysee Palace, Mr. Valls expressed his fears

“ The voluntarism leave us not, and that even more in the weeks and months to come, as the school year will be difficult in terms of economic (…) The risk of deflation is real, [as] in Europe, growth and inflation are down compared to what we could expect “

Read analysis on the economic situation. Shadow deflation still hangs over the eurozone

Prices THEIR LOWEST LEVEL SINCE 2009

M. Valls judge “economic policies in euro area are not effective” against a growth and a weaker than expected inflation, and regrets “no policy change” or the European Central Bank is “powerless” about the low inflation. According to him, if there was a “some awareness of the expectations of people in terms of growth and employment” , it “unfortunately resulted in a terrible slow . facts “

Michel Sapin, the economy minister, had responded on Thursday to the Eurostat publication:

” The situation in terms of inflation concern (…) Growth in Europe is not the hopes that we could have. “

Low inflation may slow the process of deleveraging States and, especially, households and businesses. In fact, after a slight decrease at the beginning of the year, public debt in the euro area increased from 92.7% to 93.9% of gross domestic product (GDP) in the second quarter. Mr. Sapin nevertheless refused to revise downward the estimates of the government, which expects 3.8% deficit to 3% by 2015, in line with its European commitments.

“A CRISIS OF CONFIDENCE” IN DIKE

At the end of this meeting was to establish the roadmap for the start of the government, Manuel Valls also admitted there “a crisis of confidence that we absolutely must contain”. He notably spoke “cost of living, poor housing” , and the anxiety of French “their future and that of their children,” .

The Prime Minister also believes that unemployment “reached a level quite unbearable ‘, while France has been at the end of June the eighth month of rising unemployment straight, with 3,398 million jobseekers Class A metropolis.

The roadmap is to government “reform, reform tirelessly” , “fight against blockages” and “move forward with determination, perseverance, perseverance” .

“Our policy will be the responsibility pact, any pact and further that the pact because it is thanks to him and the tax credit competitive employment [that] we can strengthen our economy. “