7 of GDP next year Nicolas Sarkozy seems ready to cross the 3 limit

Restore confidence without margins of manoeuvre: it was, yesterday, the equation of economic policy to solve for the President of the Republic. Beyond the global resolution of the banking and financial crisis, Nicolas Sarkozy sent messages more that ads.

HOUSEHOLDS:

STEP OF NEW TAXES

The morale of households sinking each month more more than a year now. To avoid that a crisis of confidence Vienna gripper more already failed engines of growth, Nicolas Sarkozy first to reassure savers: "I don't accept that a single depositor losing a single euro because a financial institution would be unable to cope with its commitments," he pledged. A message to the address of the middle classes, the parliamentary majority would like to see more choyées. For the rest, without budgetary room for manoeuvre, Nicolas Sarkozy has limited listings: step of taxes new but so over declines tax nor and, for the holders of social minima, "a bonus unique to compensate for the delay on the actual evolution of the price". They should therefore increase of 1.9 additional.

BUSINESS:

ACCESS TO THE SECURED CREDIT

"It put the entrepreneurial spirit in the heart of the value of the economy system", requested Nicolas Sarkozy. After criticizing the Government tax policy these days, Laurence Parisot, President of the Medef had to appreciate the message issued yesterday to business leaders. But, under budgetary constraints, the intervention of the State will be limited to the preservation of the existing: "I will accept not to increase charges on companies", has only promised Nicolas Sarkozy. The assurance that the State will intervene through sureties, guarantees or capital inputs if banks limit the access to credit helps to oil the wheels without spending.

Confirming announcements of François Fillon on a new reform of the tax, Nicolas Sarkozy however opened the door to his possible "disappearance", but only "term" and conditional. For the world of research, finally, it also announced that it will give "University intellectual property of discoveries and give them the means to develop."

BRUSSELS: DECLINE

DEFICITS UNLESS...

Nicolas Sarkozy went, yesterday, a step further is it had decided the Member countries of the euro area on 12 and 13 September at the Ecofin in Nice. "In the situation where the economy, I not conduirai not a policy of austerity which exacerbates the recession", he warned.

But he also added, "if activity back strongly and lastingly, I did not hesitate to take the necessary measures to support." A speech that could react Brussels: with a public deficit already foreseen at 2.7 of GDP next year, Nicolas Sarkozy seems ready to cross the 3 limit. Yesterday noon, with the members of the bureau of the UMP in the National Assembly group, Nicolas Sarkozy has even been more direct: "Is not the time to deal with the deficit", he explained. This speech relativizes the commitments of the Finance Bill presented this morning by the Council of Ministers, which relies on a return of the public deficit to 0.5 of GDP in 2012.

FRANKFURT: RELAX

INTEREST RATES

On the merits, Nicolas Sarkozy has not changed opinion: "If we take care, monetary dumping eventually lead to trade wars", he said. But after long opposing head-on the monetary policy of the Central Bank, the President of the Republic is returned in the rank and table now, with the European partners on the creation of an environment conducive to a relaxation of interest rates.