France announced the end of the fiscal austerity of

Pierre Moscovici, the French finance minister, announced on Sunday (May 5), have been the end of the fiscal austerity measures. Earlier, Germany and France again on deficit reduction dispute, Germany immediately provide flexibility issues of deficit reduction.

Moscovici said Sunday in an interview with the French media, "we are witnessing the end of the fiscal austerity toward dogmatic, fiscal austerity is the only tool to fight the debt crisis in Europe;" over the past year, we have been calls for the implementation of conducive to the promotion economic growth policy. fiscal austerity is the stumbling block to achieve economic growth. "

In Germany is about to usher in election Moscovici and German Finance Minister Wolfgang Schaeuble barriers, highlights the economic situation in Germany and France differentiation, and Francois Hollande in 2012 May replace Nicolas Sarkozy  issued by the voice of the anti-crisis after French President.

European Union (EU) Economic and Monetary Affairs Commissioner Olli Rehn has proposed to France the EU under the deficit reduction period of two years.

Germany within the ruling coalition legislators are fighting back. Schaeuble belongs CDU budget policy spokesman Basler Norbert Barthle said: "We have made it clear to the German government, Chancellor Angela Merkel (Angela Merkel) and Finance Minister Schaeuble said that the French realize EU deficit reduction specified time year 2014 is the limits of what we can accept. "

Basler said in a telephone interview on Friday (May 3), France must demonstrate that they are willing to implement structural reforms.

Merkel's campaign

In the Sept. 22 election, Merkel will seek a second term as prime minister of Germany, the European leaders in the formulation of policies also have a certain amount of space to play, the European Central Bank (ECB) President Mario Draghi is expected to take the initiative to take action. The risk is that they must be taken in promoting competitiveness and reshape economic growth policies may appear to shrink.

Morgan Stanley  person in charge of the global economy Firestone Joachim Fels said on Sunday that Europe on the implementation of austerity measures to slow down the pace, but as long as the Governments remain the focus on structural reforms, the market should be able to accept.

The European Commission (EC) on Friday (May 3), the euro zone is a record high unemployment rate outlook is not optimistic, and 12.1% of the average level of unemployment is expected to anticipate a dropped to below 12% in 2014.

French finance ministers and central bank governors on Tuesday will visit Berlin

European Commission believes that the French gross domestic product (GDP) may be a recession in 2013, Hollande and Moscovici has become the vanguard against Germany led to cut the budget deficit proposition. Schedule, Moscovici, will visit Berlin, Germany on Tuesday (May 7) and met with Schaeuble, and together with the French central bank governor Christian Noyer, Noah met with the German Central Bank (Bundesbank) President Jens Weidmann.

European Central Bank has cut interest rates by 25 basis points to 0.5% of the new record low on Thursday (May 2), Draghi said the ECB to keep an open mind on the implementation of a negative deposit rate policy.

Moscovici's speech, France's inability to cut the budget deficit target in 2012 and anticipate a budget deficit share of GDP fell to below the EU ceiling of 3% in 2013, but the country will avoid duly punished. The European Commission believes that if France does not adjust fiscal policy, the country's budget deficit share of GDP, is expected to reach 3.9% in 2014 and rose to 4.2%.

Specific flexibility

Schaeuble, a German media said on Sunday that the budget deficit target specific flexibility does exist, but this requires the Fassi between the two countries to implement the necessary reforms in France and Spain, the European Commission will be enacted before the end of detailed proposals, and will be handed over to the finance ministers of the euro area Member States to discuss and decide.

Due to the positive election year in Germany, the the major suspense German voters still worthy of attention from all walks of life, in the senior ally of the current coalition government, the euro area member states to adhere to the budget deficit criteria, such as Basler's call may result in Merkel difficult help France to flex its muscles.

Moscovici said: "I can understand why some of Germany's conservative molecular why not happy with the situation ... For them, this is not a success story, but Germany and France have a common responsibility in Europe, Germany is required for a successful France. "

At the same time, Hollande Merkel put pressure on them overcome the need in the campaign, in order to maintain the euro zone fiscal consolidation through long-term banking union.

Hollande said on Friday, Merkel will soon face test of domestic election in September, she could not give the impression that its attention to Europe beyond the impression of Germany; Germany may wish to be after the election in September and then focus on the banking union up.