By BridgeNews
Frankfurt--March 2--French Finance Minister Laurent Fabius said the independence of the ECB was not up for discussion. In an interview with German daily Frankfurter Allgemeine Zeitung Friday he indicated he did not like the idea of 'economic governments' of the euro zone presented as counter-balance to the European Central Bank. Fabius also reiterated his view that France's economy was in good shape and appeared to be the growth locomotive in the European Union.
* * * Fabius did not view relations between France and Germany as impaired, the paper said. "Germany and France have to develop a common vision of what Europe should look like in ten or twenty years," he said. "Problems between the two countries should be openly discussed." Turning to the question of reforms in France, Fabius said "tax cuts are the best tax reforms," according to the paper. He added other reforms need to be undertaken, but reforms of health services and pension were difficult. "Even in a France ruled by the Left there is resistance to change," he said.
Fabius also reiterated his positive view about France's economic situation.
"The French economy is in a good condition. The number of unemployed is falling and inflation rate is under control."
Nevertheless, he warned about possible effects of world slowdown on France.
"We have to stay careful. The slowdown of the U.S. economy will have effects on Europe, although France may be less affected from it than other European states."
He said this year economic growth in France was likely to moderate from that in 2000, but that there was no need yet to revise state budget of mid-term finance plans. End