France and Germany will propose reducing EU rules that harm growth

France and Germany will propose reducing EU rules that harm growth

French finance chief Bruno Le Maire said he will make proposals in early March with German Economy Minister Robert Habeck to reduce tax rules. European Union that, According to him, they are holding back businesses and harming growth.

“We are running an economical 100-meter race with a ball and chain around our ankle,” Le Maire told reporters in Paris on Monday. “European growth is limited by norms, rules, directives and regulations, there is excessive administration.” He added that these measures were holding back EU companies and did not apply to US and Chinese companies.

With the EU in a prolonged period of near stagnation, the French government cut its GDP growth forecast for this year and announced $10.8 billion in spending cuts in an effort to meet commitments to reduce the country’s budget deficit. Habeck said last week that Germany will revise its forecast downwards.

Le Maire placed part of the blame for the bloc’s economic challenges on Brussels regulationsadding that he and Habeck will detail the proposals at a Franco-German cabinet meeting on March 5.

Le Maire reiterated that progress in deepening European capital markets is also key to driving European growth. EU finance ministers are due to discuss the issue at a meeting in Ghent, Belgium, later this week.