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François Hollande promised an “offensive” to bring “more growth and less austerity” to Europe as he launched a bid to resurrect his presidency. He made clear for the first time that people would have to work longer to earn their pensions, and sanctioned a partial sale of state industrial holdings.
Mr Hollande is being pushed hard by France’s European partners – especially Germany – to speed up the pace of reform to reinvigorate the eurozone’s second-largest economy, which has suffered badly declining competitiveness in recent years. He said the first priority of his second-year “offensive” was a four-point plan to “get Europe out of its torpor” – concentrating on combating youth unemployment and a strategy of investment. “The number one objective is changing Europe’s direction to have more growth and less austerity”, he said.
Mr Hollande called for an “economic government” for the eurozone led by “a real president appointed for a long period” that would meet monthly to fix economic, tax and social policy. The eurozone should have its own budget, with the possibility of borrowing.
In a swipe at plans by David Cameron, British prime minister, to repatriate powers from the EU or face a possible UK exit, Mr Hollande said the priority was the strengthening of the eurozone. “I understand that there are countries that don’t want to join the euro, but they cannot stop the consolidation of the eurozone. If they want to go further the risk is that we will have a break-up of Europe. So there are limits to be set.”
In his clearest message to date to French voters that he would push ahead with pension reforms – a demand from the European Commission, the EU’s executive arm – he said he could not allow the system to continue to pile up a deficit, anticipated at €20 billion in 2020.
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