Sarkozy defends reforms against financial storm

French President Nicolas Sarkozy is to make the case for continuing economic reforms on Thursday despite the global financial crisis and flagging growth that is sharply reducing his room to manoeuvre, reported

Back from his foray on the world stage at the United Nations in New York, Sarkozy travels to the southern city of Toulon, speaking directly to the people in a major address on the economy.

The president is to outline how France intends to confront the worst crisis in financial markets since the 1929 Wall Street crash that ushered in the Great Depression.

Sarkozy will show "there is a captain at the wheel" and "give some perspective on the government's economic policy", an aide said of the speech to be delivered at 6:30 pm (1630 GMT) before 4,000 people.

A recent poll showed 62 percent of the French disapprove of Sarkozy's handling of the eurozone's second biggest economy although his overall approval rating has edged up in the past weeks.

On Tuesday, he called for an international summit on the financial meltdown to discuss creating a new system of "regulated capitalism", during an address to the UN General Assembly.

In his first comments since the collapse of US investment giant Lehman Brothers 10 days ago, Sarkozy appealed for "a regulated capitalism in which whole swathes of financial activity are not left to the sole judgment of market operators."

There was speculation that the president could announce some measure to curb the "golden parachute" severance payments to chief executives after France's top business lobby, the Medef, said it would recommend such a step.

The Toulon speech comes on the eve of the release of the 2009 budget to the cabinet, capping weeks of tense juggling to set priorities in the government's reform programme.

Finance Minister Christine Lagarde has forecast growth for next year at "around one percent", lower than the 1.25-2.25 percent figure predicted earlier this year.

Sluggish growth translates into a loss of revenue for the French state, which is already five billion euros (7.4 billion dollars) in the hole from the economic slowdown in 2008, according to finance officials.

Sarkozy won election in May 2007 on a pledge to "inject fuel" into the economy with tax cuts and measures to free up growth, that he has repeatedly lamented is lagging behind France's eurozone partners.

Budget Minister Eric Woerth has warned that 2009 will be a "difficult year" but that the government would not backtrack from its commitment to reduce public spending.

France has pledged to balance its books by 2012, missing a European Union target of 2010 for governments to rein in spending and reach a balanced budget.

Economists question whether this can be achieved in the current difficult context, with French households hard hit by inflation and increasingly worried about their living standards.

Purchasing power has replaced unemployment in public opinion polls as the nation's number one concern.

The public deficit is expected to reach 2.7 percent of GDP this year, slightly higher than the 2.5 percent forecast. The government had set its sights on a deficit capped at 2.0 percent for 2009.

Subscribe to Trend in Google News! Subscribe
Georgia’s construction equipment vendor to represent UK company in Azerbaijan
Georgia’s construction equipment vendor to represent UK company in Azerbaijan
Georgia shares data on visitor inflow from Iran
Georgia shares data on visitor inflow from Iran
Georgia publishes COVID-19 data for January 17
Georgia publishes COVID-19 data for January 17
Loading Bars
Iran to set up underwater pipeline to supply gas to Qeshm Island
Iran opens container shipping route to India
Kazakhstan Railways opens tender to buy spare parts
Azerbaijan changes amounts of official salaries of non-state employees of state structures
ISIPO discloses number of enterprises re-launched in Iran
Kazakhstan's trade with EAEU countries growing
Hydrogen to cover over 10% of global energy use by 2050
Georgia’s construction equipment vendor to represent UK company in Azerbaijan
Azerbaijan Army's engineering units manage movement on snowy roads in liberated lands (VIDEO)
Kazakhstan increases total production, import volume of cereals
Azerbaijan increases monthly salaries of senior sports scouts
TAP’s technical forward capacity by Jan.23
Physical gas flows, nominations at TAP’s interconnections
Central Bank of Iran to test using cryptocurrency for int'l trade transactions
Azerbaijan mine-clearing report for its liberated lands
Overall index of Tehran Stock Exchange drops 11,000 points
Iran keen to boost loading/unloading operations at Amirabad port
Turkish export of electrical goods to Azerbaijan rises in 2021
Executive Power of Azerbaijan’s Baku city opens tender to buy spare parts for trucks
Iran’s Bouali Sina Petrochemical Company sees surge in production
UAE's Mubadala invests $100m in Israeli VC firms
Georgia shares data on visitor inflow from Iran
Tatneft to improve well flow rate in Turkmenistan’s oil fields
SOCAR Energy Ukraine reveals plans for 2022
Number of Turkish jobseekers in Uzbekistan revealed for 2021
Turkey sees increase in number of real estate purchased by Kazakh citizens in 2021
Number of Turkish jobseekers in Kazakhstan drops in 2021
SOCAR Energy Ukraine’s fuel sales returning to pre-crisis level
Easing of budget policy in Kazakhstan may weaken national currency - forecast
Georgia publishes COVID-19 data for January 17
New urgent talks needed with Azerbaijan if IGB is delayed – Bulgargaz
Azerbaijan shares data on volume of mortgage lending
Real estate prices in Azerbaijan expected to grow - expert
Iran eyes new money transfer methods in trade with Russia
Iran launches Car Tax Collection website
Goyal assures full support to IT firms in pushing growth, exports to $1 trn
India's vaccination drive completes 1 yr, Centre launches stamp
Iran's Energy Exchange announces products to be on sale on January 17
Azerbaijani currency rates for January 17
Weekly review of Azerbaijani oil market
Azerbaijan records increase in industrial production for 2021
India Inc expects 2022 to be growth wear
India’s tourism gets a huge push at Expo 2020 Dubai
Iranian currency rates for January 17
Khizi-Absheron wind farm to allow Azerbaijan to increase export of gas - expert
Iran shares data on power generation capacity of HPPs
Kazakh Gas Processing Plant opens tender to buy pumping unit
Investments in Azerbaijan's fixed capital down in 2021
Direct flights launched between Gabala and Moscow (PHOTO/VIDEO)
Weekly review of Azerbaijani currency market
Georgia shares data on tea imports, exports
Iran records decrease in dam water reserves
Iran unveils volume of olives harvested in country
IRICA shares data on Iran’s trade turnover with Azerbaijan
Australia recognizes Russia’s Sputnik V vaccine against COVID-19
Uzbekistan shares domestic COVID-19 data for January 16
Iran sees increase in transit of goods by trucks
Iran shares data on export-import process, movement of trucks via Astara border checkpoint
Azerbaijan sees increase in employment figures
Buy/sell operations at Iran Mercantile Exchange down
One year of vaccination drive: Near 158-cr jabs administered in India
India's 1st S-400 unit to be ready by April, 4 others by 2023
Israel increases state aid plan for COVID-hit airlines
Weekly review of Azerbaijani precious metals market
Weekly review of key events in Azerbaijan's ICT sector
Iran to save money following construction of new pipeline – NIORDC
Oil extends rally on supply tightness, Brent at more than 3-year high
Number of passenger planes flying over Iranian airspace increase
China launches new satellite
Azerbaijani MoD confirms death of active duty military serviceman
Israel registers 27,167 new COVID-19 cases, 1,785,551 in total
India's gold imports jump over two-fold to $38 bn in Apr-Dec 2021
Number of participants of illegal actions detained in Almaty increased to 2,6 thousand people
Turkey registers 54,100 daily COVID-19 cases
Eight of 10 most valued firms add Rs 2.34 trn in m-cap
N.Korea fires two ballistic missile from Pyongyang airport, S.Korea says
PM Narendra Modi calls for innovating for India, from India
Vessel traffic in Bosphorus restored
UK's Johnson plans to scrap COVID-19 self-isolation law
Jaishankar, Rajapaksa discuss energy projects, credit lines
Tsunami advisory canceled for Bay Area in U.S. California
Volkswagen to step up EV production in China
Let’s talk stress-free exams: PM Narendra Modi on ‘Pariksha Pe Charcha’
Djokovic flies out of Australia after losing court appeal
Vaccination added great strength to fight against Covid: Indian PM
Azerbaijan's patience not unlimited: on demarcation of borders and Armenia's attempts to play for time
French parliament approves vaccine pass
Speaker of Montenegrin Parliament arrives on official visit to Azerbaijan (PHOTO)
Erdogan visits Albania in first trip abroad in 2022
COVID-19: new 900 cases registered in Uzbekistan
$2.7b of goods exported to Persian Gulf regional countries: Iran's official
India’s stance on Nepal boundary well known, consistent & unambiguous: Embassy
Oil India exits US shale venture, sells 20% stake for $25 million
Construction of new road and tunnel near Georgian-Russian border will be completed by 2024
Dutch FMO reveals details of investing in Uzbekistan's economy, ties with banks
Nearly 150 civilians, over 10 law enforcers killed in riots in Almaty
Delhi weekend curfew, restrictions helped mitigate Covid spread: Health Minister
Over 1,300 weapons stolen during riots in Almaty
Gunmen kill more than 50 in Nigeria's northwest, residents say
Magnitude 5.3 earthquake shakes western Turkey's Gokceada
All news