Thursday, 26 April 2012

Sarkozy Says Won't Deviate From Deficit Targets


PARIS (Dow Jones)--French President Nicolas Sarkozy said Thursday he will not drop France's deficit reduction targets if he is reelected in a runoff against socialist rival Francois Hollande in presidential elections May 6.
A need for growth was propelled to the center of the European debate Thursday, after European Central Bank President Mario Draghi said Wednesday that Europe needs a growth compact to complement the fiscal compact for greater fiscal convergence and discipline.
"France has to reduce its spending, reduce its deficits and debt to be master of its destiny," Sarkozy said on French radio station France Inter.
Sarkozy's government has pledged to get the deficit down to 3% of gross domestic product in 2013 and to balance France's finances in 2016. Hollande has also pledged, if elected, to get the deficit down to 3% of GDP next year, but the socialist candidate has said he would balance the finances a year later in 2017.

-By William Horobin, Dow Jones Newswires; +33 1 4017 1737; william.horobin@dowjones.com

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