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France's Hollande Calls for 'Euro Zone Government'

CNBC and Reuters
Thursday, 16 May 2013 | 10:35 AM ET
French President Francois Hollande
Getty Images
French President Francois Hollande

French President Francois Hollande called on Thursday afternoon for a euro zone economic government with its own budgetary capacity, a harmonized tax system and a president.

Speaking at a news conference marking his first year in power, he said France wanted to create a full political European Union within two years.

"My initiative has four points that I am putting to our partners. The first point is to create an economic government with the euro zone countries which would meet every month with a real president named for a long period and who would be devoted to this task," Hollande said.

The Socialist leader also defended his reform record, saying that France can keep its welfare model, but it must be made more efficient.

"I asked Prime Minister Jean-Marc Ayrault to present a 10-year investment plant around 4 sectors: the digital industry, the energy transition, health and large infrastructure projects. to ensure the financing we will have to be more creative than in the past," Hollande said at the conference, which takes place at the Elysee Palace in Paris.

He added that the trend of rising French unemployment can be reversed before the end of 2013.

(Read More: France Slides Into Recession, Germany Disappoints)

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