Daily Management Review

French Finance Minister: the euro zone is not sufficiently prepared for a new crisis


10/29/2018


The budget crisis in Italy does not pose a danger to the European Union, but the euro zone is not sufficiently prepared for a new economic crisis, French Finance Minister Bruno Le Maire said in an interview with Le Parisien on Sunday.



APCMA France
APCMA France
“We do not see any negative consequences [of the situation in Italy] in Europe,” Le Maire said.

“But is the euro zone sufficiently prepared for a new economic or financial crisis? My answer is no. It is extremely important to do what we have offered to our partners to have a strong banking union and euro zone investment budget,” added the French Finance Minister.

Last week, the European Commission rejected Italy’s draft budget. The negative conclusion means that the executive body of the EU is asking the Italian government to review and resubmit its budget plan.

Italy set a budget deficit target of 2.4% of GDP in 2019 (three times the previous target), 2.1% in 2020 and 1.8% in 2021

The increase in the target deficit compared to the previously agreed level has caused dissatisfaction with the European Commission. Italy will now have three weeks to make changes to their spending plans and resubmit them to Brussels.

Euro zone officials said that the unprecedented standoff between Rome and Brussels is likely to delay the reform process.

Le Maire also said that French banks with branches in Italy issued corporate and consumer loans totaling € 280 billion.

"This amount is manageable, but significant," he said.

Meanwhile, France, the second largest economy in Europe, received a letter from Brussels warning that its planned debt reduction in 2019 did not match the proposals that Paris had previously agreed with the EU.

France’s draft budget for 2019 provides for a reduction in the structural deficit by 0.1% this year and by 0.3% in 2019. In April, Paris agreed with Brussels to reduce the structural deficit by 0.6% of GDP per year.

source: leparisien.fr






Science & Technology

UK trials new breathing aid developed by Mercedes Formula One

Uber sues Los Angeles authorities over user data collection

Google Introduces New Coronavirus Website

WHO Warns That The Youth Are ‘Not Invincible' To The Novel Coronavirus

Chinese software company learns to recognize 95% of masked faces

World's largest retailer to use 5G for medical services

SpaceX Receives Approval To Create Research & Manufacturing Facility In Los Angeles

JPMorgan: Transition to e-money will be based on blockchain

Tesla In Advance Talks With CATL For Using Lithium Batteries

Financial giants and US government turn to quantum computers

World Politics

World & Politics

Aerospace Consortium To Build Ten Thousand Ventilator In Britain

US Ambassador To UK Holds China Responsible For Global Spread Of Coronavirus

China to lift quarantine in Wuhan on April 8

Canada, Australia refuse to send athletes to Olympics 2020

Plans For A Possible Delay Of Olympics Being Formulated By Tokyo Organizers: Reuters

Maduro says Venezuela will receive UN assistance to fight coronavirus

2 Million Masks For Coronavirus Crisis In Europe Donated By Jack Ma

National Emergency Declared In The US By Donald Trump Over Coronavirus