French president gives priority to growth, employment

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Last updated at: (Beijing Time) Friday, April 02, 2004

French president gives priority to growth, employment

French President Jacques Chirac pledged on Thursday at a television speech to give the priority to economic growth and fighting unemployment, while continuing to cuttaxes.

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French President Jacques Chirac pledged on Thursday at a television speech to give the priority to economic growth and fighting unemployment, while continuing to cut taxes.

It was his first public comments since the major government reshuffle on Wednesday in the wake of the center-right's crushing defeat in Sunday's regional elections, where the left coalition took control of 24 of 26 French regions.

Chirac said he had got French people's message in the regional elections of their concerns, impatience and discontent and ensured that the government reforms would not destroy social welfare.

"The government must take this message into account, by being more than ever before on the offensive in two fields -- employment and growth -- and then by having the spirit of social justice," Chirac said in a 45-minute live television interview, which involved a variety of issues, from health insurance to unemployment amounting to 9.6 percent.

He justified his choice of Raffarin as Prime Minister, saying "he's a qualified man, who knows well France and French people." As to appointing Nicolas Sarkosy as finance minister, Chirac said "Itwas clear a new impulse had to be given to the economy."

France's deficit and public debts in 2003 both exceeded the ceilings set by the European Union (EU). The new government pledged to bring the public deficit from 4.1 percent of its gross domestic product (GDP) in 2003 to below the euro zone limit of 3 percent in 2005.

Chirac also said it is essential to bring the tax level to the average of Europe and continue tax cuts "as long as possible within our restrictions."

"We are in a situation where our deficit is not acceptable to our partners, and our debts have become so much that we make our current comfort paid by children," Chirac said, referring to the levy four times higher than other European countries.

Chirac reaffirmed his willingness to press ahead with reforms, notably the health insurance even though he believed them to be essential but difficult.

Concerning appointing Michel Barnier, European Union commissioner for regional policy and institution reforms since 1999, Chirac said "France's foreign policy will not change. It mainly comes from the president of the republic, and as long as I am around, this policy will not change."

Chirac, who had been expected to visit Moscow on Thursday and Friday, has postponed his trip to Saturday so that he can attend the first meeting of the new French government on Friday.

Reappointed Prime Minister Raffarin was to set out his program before the National Assembly.

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