France angles for new EU timetable on budget limits

France's reshuffled government took a combative tone with Brussels today, with new Finance Minister Michel Sapin saying the "pace" of deficit reduction would be raised in EU talks.
European Central Bank President Mario Draghi quickly fired back that reviewing budget commitments would undermine confidence in the eurozone.
With the European Union pushing France to reduce its deficit, Sapin said he would work with the European Commission to "find the path to common interests".
"Europe will be in better shape when France is in better shape," Sapin said in his first public comments since his appointment yesterday.
"We must together share the only important concern: more growth for more jobs, while gradually rebalancing our public finances."

Sapin added that France would not abandon efforts to reduce the deficit, but provided no timeline.

"The goals are goals that we will meet," he said several times.
Sapin's remarks were in contrast to a warning by eurozone finance ministers on Tuesday that France must respect its promises to meet an already delayed EU deadline for budget limits.
Draghi repeated the warning today, telling reporters: "Undermining agreed rules undermines trust."
He said eurozone countries had made "important progress" in balancing budgets but should not "unravel past consolidation achievements".
The OECD, which advises rich nations on economic policy, also recommended today that eurozone nations "continue fiscal consolidation, respecting the requirements of the Stability and Growth Pact..."

France has promised to reduce its public deficit from 4.3 per cent of national output last year to under 3.0 per cent next year in line with the EU's pact.
But with the economy stagnant and joblessness rising, President Francois Hollande's government is struggling to impose the spending cuts or tax increases needed to rein in the deficit.
The Socialist government is deeply unpopular and reeling from a dismal showing for the party in local elections on Sunday which prompted the reshuffle under new Prime Minister Manuel Valls.