EU's Rehn calls for stronger French fiscal consolidation, reforms

LUXEMBOURG, June 20 Fri Jun 20, 2014 8:23am EDT

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LUXEMBOURG, June 20 (Reuters) - European Economic Commissioner Olli Rehn called on Friday for intensified efforts from France on fiscal consolidation and reforms to put it on a sustainable path.

France, whose economy barely grew over the last two years, is an example of the difficulty facing many governments that needs to balance unpopular structural reforms of pensions or labour laws and a tight rein on public spending.

The European Commision already told Paris earlier this month to stick to their pledges to curb spending while reforming the economy and bring the deficit below 3 percent next year, warning the target could be missed.

"I trust that France will further intensify its efforts not only in the field of fiscal consolidation but in the field of structural reforms and supporting investment, because what France needs is stronger emphasis on competitiveness, growth and employment while maintaining sound public finances," Rehn said after a meeting of European Union's finance ministers.

Rehn said the European Commission will be able to assess additional measures announced by France after the summer break at earliest. (Reporting By Martin Santa)

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