GO
Loading...

Global growth target ambitious but achievable: France

Reported by Oriel Morrison, Written by Katie Holliday
Sunday, 23 Feb 2014 | 2:27 AM ET
French Minister of Finance Pierre Moscovici.
Philippe Huguen | AFP | Getty Images
French Minister of Finance Pierre Moscovici.

Plans to meet a global growth target over the next five years are ambitious but achievable, France's Finance Minister Pierre Moscovici told CNBC on the sidelines of a gathering of world finance ministers and central bankers in Sydney.

The G-20 said in a communiqué on Sunday that they would develop policies to lift their collective gross domestic product by more than 2 percent above the trajectory implied by current policies over the coming five years.

According to the communiqué, the G-20 has embraced a goal to generate over $2 trillion in additional output over five years, while creating tens of millions of new jobs.

(Read More: French Fin Min: We're not building the Soviet Union)

"I would say that is reasonable and ambitious. Yes it is perfectively achievable, and as I said…ambitious because today the world needs growth and [it's] also realistic, because it is not a huge figure," Moscovici told CNBC on the sidelines of the G-20 on Sunday.

"This figure doesn't come from nowhere, it is what the international organizations – such as the Organization for Economic Co-operation and Development (OECD) and others – tend to say. It's reasonable that if we all cooperate and look towards growth we can produce that figure," he added.

(Read More: Euro is 'too strong, too German': French minister)

Aus Fin Min: G-20 needs to commit to growth targets
Australia's Finance Minister Mathias Cormann, says he hopes the G-20, which meets this weekend, can commit to a plan of action that will strengthen the global economy.

The G-20 growth plan was based an International Monetary Fund paper prepared for the Sydney meeting, which estimated structural reforms could hike growth levels by 0.5 percent per year over the next five years, Reuters reported.

Specific structural reforms are set to be finalized at the G-20 summit in Brisbane in November.

(Read More: Moscovici: France must invest in Africa)

Another hot topic at the G-20 meeting has been the implications of the Federal Reserve unwinding its monetary stimulus program, which has sparked volatility in financial markets and in particular emerging markets.

The G-20 communiqué gave a nod to the concerns of battered emerging markets and said global central banks would be careful to share information and be mindful of the impact their policies can have on the global economy.

Moscovici said he was confident in the abilities of Fed chair Janet Yellen, who became the new U.S. central bank chief last month.

(Read More: France: We're not a failed socialist experiment)

"She's the right person to address the economic problems of the American economy, but she's also taking care of what happens all around and this I think is a good signal for the global economy," he said.

He added that the worst of the euro zone crisis was "obviously over."

"Greece has stayed in the euro zone, Cyprus did not default, we are creating a banking union in the euro zone and we have the tools to stabilize. We are now regaining growth and are out of recession…so yes it's over, now the question is how can we have higher growth?" he added.

By CNBC's Katie Holliday: Follow her on Twitter @hollidaykatie

Contact Europe: Economy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More