Eurogroup chief Kyriakos Pierrakakis said he has a lot of confidence in France’s finance minister. (EPA Images pic)
LUXEMBOURG: Eurozone countries trust that France will honour its public finance commitments, Eurogroup chief Kyriakos Pierrakakis said Thursday, after France’s high debt and deficits sent its government bond yields soaring.
“We have confidence in France’s commitment vis-a-vis sound public finances,” he told reporters after a meeting of the single currency area’s finance ministers in Luxembourg.
“I have personally a lot of confidence (in) my good colleague Roland Lescure,” he added, referring to France’s finance minister.
Mounting concerns about public spending in France have in recent weeks pushed government borrowing rates to levels unseen since the global financial crisis.
Amid contagion fears in Europe, Pierrakakis said the eurozone was “mindful, we are attentive, we are vigilant, but not alarmed”.
The eurozone economy has come under pressure from the energy shock caused by the war in the Middle East, forcing inflation to hit levels not seen since 2023.
With pressures rising on public finances, Greece and Italy have demanded more wiggle room under the EU’s fiscal rules.
But EU economy chief Valdis Dombrovskis, standing alongside Pierrakakis, rejected such appeals since Brussels had already provided flexibility.
“We cannot come with new fiscal flexibilities all the time,” he said.
“In fact, this could cast doubt on our collective resolve to uphold the rules-based fiscal framework at a time when credibility of our commitment to fiscal sustainability is a vital asset,” he added.
“So, we should not put that at risk.”