Hollande said to accelerate reforms to boost growth – elEconomista.es

Hollande said to accelerate reforms to boost growth – elEconomista.es

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By Ingrid Melander

PARIS (Reuters) – French President, Francois Hollande, said Wednesday that accelerate reforms to boost growth and adopt tax cuts for households with low incomes, while trying to regain the trust of some voters who do not believe that you can make to country out of stagnation.

The most unpopular French president in modern history has been criticized by the opposition and even by some of his fellow socialists because of their economic policy. His Government was forced to admit last week that he would not meet the fiscal and growth objectives.

While preparing for tough negotiations on the budgets of 2015, both at home and with European partners Hollande tried to explain in an interview with Le Monde that will work on both fronts: reforming France and helping lower income households.

“The fact of the situation is difficult in France and in Europe does not mean that we should surrender. Instead, we need to go faster and farther,” I said.

“I will accelerate reforms to boost growth as quickly as possible, “he added, beginning with the construction of houses.

He did not elaborate beyond saying that the plan will face financial tax issues, regulatory and construction-related .

Housing has become a major headache for the government – the new construction are at least 16 years, a serious drag on the economy. Developers attributed the problem in part to the regulation that came into force this year to set limits on rent in cities of over 50,000 inhabitants.

Hollande also confirmed that the Government will reform the social assistance and legislation the income tax to give poorer households a similar tax relief to which it had approved and was knocked down by the Constitutional Court this month.

The initial plan is to offer tax breaks on the payroll of workers with lower incomes totaling 2,500 million euros next year. The Government has also promised to extend a tax exemption of about 1,000 million euros for the lowest incomes.

A poll published last weekend showed that 85 percent of voters do not believe the Government can cut a strike at record levels, and only 16 percent believe will drive growth.

REDUCING BUREAUCRACY

Hollande said he will not change government policy which has approved much larger tax cuts for businesses, ignoring requests from socialist deputies rebels who have asked him to change course.

This year the Government promised tax breaks for 40,000 million for companies for years and 50,000 million euros of cuts in public spending.

The socialist president said in September addressed the reform of closed professions like pharmacists and notaries, a traditional demand and Brussels which hopes to convince its European that is taking structural reforms partners -. key to allow him to delay meeting the deficit targets something

In addition, “will adapt” a general prohibition to open shops on Sunday, Hollande said, in another attempt to reduce bureaucracy and old meet business demands.

France needs to send its draft budgets to the European Commission for review in mid-October. Brussels may return it or rewrite it if you are not satisfied.

Paris you risk possible sanctions from European partners if you miss the deficit target again this year, but could receive another postponement as 2013.

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