Chirac Says France Will Respect Stability Pact Commitments

by Ulrika Lomas, Tax-News.com, Brussels

22 May 2002

French President, Jacques Chirac confirmed last week that France will abide by the principles of the European Union stability pact, and will aim to balance its budget by 2004, the deadline reaffirmed at a summit in March.

Controversy was sparked following the presidential elections in France, when both M. Chirac and his newly elected Budget Minister, Alain Lambert suggested that in order to fund promised tax cuts and increased security spending, the commitment to bring the French budget 'to balance or in surplus' might have to be postponed until 2007.

Following swift and angry responses from fellow EU members and European Commissioners, however, it appears that the French President has accepted that he has a duty to abide by the deadline which he himself was involved in setting earlier this year.

Speaking at a press conference, M. Chirac announced: 'France will naturally respect its commitments in regard to the stability and growth pact. France will naturally work towards a balance as quickly as possible by mastering public finances.'

However, the 2004 deadline was not specifically mentioned by the French President, an ommission which may leave a question mark in the minds of EU members.

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