President Francois Hollande said the euro area needs the lowest possible interest rates to help revive economic growth and that completing plans for banking union among the bloc’s countries should help achieve them.
“We need the lowest possible interest rates,” Hollande said at a press conference in Paris. “It’s already the case in many countries, notably in France. At the same time many small companies are having a hard time getting funding. And there are countries with interest rates that are too high.”
Addressing this “passes through banking union,” he said.
Hollande also dismissed concern about a draft text from his Socialist Party that targeted German Chancellor Angela Merkel in relation to concern about excessive European fiscal austerity, saying that the draft was not adopted by the party.
European leaders have a responsibility to revive growth in part to ensure the region maintains political stability, he said.
“We have this responsibility to give this hope,” he said. “What’s at stake is not only European economy, but political stability.”
France needs to address its competitiveness gap he said, adding that he plans to tackle the nation’s pension deficit.
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