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French deficit pledge will help euro zone budget discussions, ECB's Coeure says

The French government's renewed commitment to bring its budget deficit in line with an EU limit is good not only for France but for upcoming euro zone discussions on budgets, ECB Executive Board member Benoit Coeure said on Sunday.

French President Emmanuel Macron at a press conference at the Chancellery on May 15, 2017 in Berlin, Germany.
Axel Schmidt | Getty Image

The French government has committed to stick to plans to cut the deficit to 3 percent of economic output this year despite overspending this year by its predecessor.

"One of the constraints facing the government is to keep its commitments on the budget and in particular on the three percent. This is something that we welcome in part because of the consequences for the rest of Europe," Coeure said.

Speaking at an economics conference in southern France, Coeure said that France's respect for the rules would help discussions the government hopes to launch soon about common budget measures in the euro zone.

Benoit Coeure
Jason Alden | Bloomberg | Getty Images

"You can't tell others what to do if you don't respect the rules yourself," Coeure said.

Speaking at the same conference, French Finance Minister Bruno Le Maire said that the government could cut spending and taxes at the same time.

"It's because the ECB's monetary policy is accommodative that we must without delay launch the transformation of our economy," Le Maire said.

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