Zero growth in the second quarter as the first – Le Nouvel Observateur

Zero growth in the second quarter as the first – Le Nouvel Observateur

France saw its gross domestic product (GDP) in volume stagnated in the second quarter, as mentioned in the first, INSEE announced Thursday, Aug. 14, noting that almost all engines growth was broken.

growth zero in the spring is due in particular by a further decline in business investment ( -0.8% compared to the first quarter) and a negative contribution from foreign trade, which cost 0.1 percent of GDP over the period. Only the household consumption (+0.5%) and public spending (+0.5%) supported the activity.

The finance minister Michel Sapin acknowledged Thursday the “failure” of growth in France and called for a European response from the ECB and an “adaptation” of fiscal rules.

Michel Sapin warned in an article published by “Le Monde” that France will reach 0.5% growth this year, against an initial target of 1%, and does not believe in 2015 to a figure “well above 1%.”

All Europe “reached by this languor “

Slow growth combined with sluggish inflation will result in a deficit” of more than 4% of gross domestic product in 2014, “he said the minister, instead of an initial forecast 3.8%. The purpose of a compliance in 2015 with the European limit of 3% in fact find compromise.

Recalling that the whole of Europe was “achieved by languor” cyclical and this “failure “Growth, Michel Sapin said that the solution was to come as the Frankfurt headquarters of the ECB and Brussels headquarters of the European Commission.

Europe must act firmly, clearly, adapting deeply its decisions to the particular and exceptional situation facing our continent. France will use in this direction, “he wrote.

” The European Central Bank has made good decisions. It must go through its ability, in accordance with its mandate, so that the risk of deflation disappears and the euro finds a more favorable “level, writes Michel Sapin. Far the ECB has specifically denied direct financing of states through the purchase of government debt.

The French minister also asked to “adapt the pace of public deficit reduction to the current economic situation,” which sees in France inability to meet its targets for reducing deficits.

Paris, meanwhile, will hold “no weakness” that promise to save € 50 billion to continue its reforms, but will not attempt fill the new gaps in its finances by tax increases, says Michel Sapin.