French President Francois Hollande and ECB’s Head Mario Draghi noted that weak growth and deflation are the main threats to the European economy.
Lately, France has been showing anemic pace of growth with unemployment at the highest levels. As the result, the government deficit is below the targeted 3% of GDP. At the end of July 2014, the total number of unemployed Frenchmen popped up 0.8% in France hitting the level of 3,424.4 mln people.
In a conversation with Mario Draghi, Francoise Holland noted that France plans to obey and follow all the requirements on structural reforms and deficit reduction. For context, France has already missed the deficit target twice.
"There are rules to follow, and France will respect them," an advisor to Hollande said. "This will to raise the growth potential with structural reforms is enormously appreciated."
Hollande has been criticized recently by his allies. The president showed immediate reaction to the negative reviews: dissident politicians have been sacked, for example, now-replaces economy minister Montebourg. Representatives of Francoise Hollande confirmed today that Michele Sapin will remain at the post of finance minister, while Emmanuel Macron, former private bankier, will replace Montebourg.
