Mr Hollande said insisting on meeting strict budget-deficit reduction targets could fuel social discontent, result in a rise of populist governments, and endanger Europe's cohesion. "More austerity would condemn Europe to recession", Mr Hollande said in a prime-time interview with state television channel France 2. "It would make it explode."
Mr Hollande came to power promising to rekindle economic growth through higher European investments, while balancing the budget at home by the end of his five-year mandate. But he has been struggling on both fronts: In Brussels, other governments have refused to plough more money into European infrastructure and development programs; in France, weaker-than-expected growth has led the government to give up on the goal of reducing budget deficit to 3 per cent of yearly output in 2013, from an estimated 4.5 per cent in 2012.
Mr Hollande's failure to boost European growth plans as well as to meet his budget pledge have fueled scepticism among French people that he can solve the country's economic woes, analysts say. "French people have troubles seeing where Mr Hollande is heading", said Gaël Sliman, a political analyst with French polling agency BVA.
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