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M. Continuo

French PM says 'things moving' on EU deficit rules


    PARIS (Reuters) - French Prime Minister Manuel Valls said on Friday European Union rules on public debt and deficit control should be more flexibly applied and he believed this idea was gaining ground among EU capitals.

    Speaking before an EU summit that takes place at the end of next week, Valls said in a radio interview the rules should be respected, "but that also means the distinction must be made between budget considerations and investments for the future".

    "Things are starting to move," Valls told the France Inter public radio station. "Yes, greater flexibility is needed and it's a good thing it has been said by German Vice Chancellor Sigmar Gabriel and Italy's prime minister."

    "At this must be done while respecting out (EU) treaties and done with consultation among all leaders," said Valls, who alluded to long-standing German reluctance to consider any form of get-out clauses on deficit reduction.

    "(German) Chancellor Angela Merkel's position must be respected but today we must also operate with growth and jobs in mind," he said.

    Euro zone policy makers meeting in Luxembourg on Thursday agreed the European Union could be flexible about the time members need to fix their budgets if they reform to boost growth - but it must first have proof such efforts are taking place.

    (Reporting by Yann Le Guernigou; Writing by Brian Love; editing by Mark John)