Hollande proposes ‘new pact’ for Europe in inaugural address

BERLIN — Newly installed French President Francois Hollande declared Tuesday that he wanted to “renegotiate” Europe’s response to its economic crisis to focus on stimulating growth, as he opened a new chapter in Europe’s push-pull dispute about whether countries should fix themselves through spending or saving.

Standing in Berlin next to a stony-faced German Chancellor Angela Merkel — who is of the saving, not spending, camp — Hollande noted to reporters that “it was not the first time” leaders held differing views. Merkel said disagreements could be “fruitful.” Both said they would keep working together — and they have little choice.

Video

Francois Hollande has been installed in the Elysee Palace as the new French president. He appointed Jean-Marc Ayrault as prime minister.

Francois Hollande has been installed in the Elysee Palace as the new French president. He appointed Jean-Marc Ayrault as prime minister.

Latest stories from Foreign

26 killed in 2 car bombings in Niger targeting barracks, French mine

26 killed in 2 car bombings in Niger targeting barracks, French mine

Attacks highlight the growing reach and sophistication of the Islamist extremists in neighboring Mali.

World Digest: May 23, 2013

Death toll at 16 after five days of fighting in Lebanon’s Tripoli; Taliban rickshaw bomb kills 13 in Pakistan.

Letting Putin down: Are Russians not living up to his expectations?

Letting Putin down: Are Russians not living up to his expectations?

In an early biography, he let slip a KGB view of the meaning of citizenship.

Over protests, Israel plans to double prayer space at Western Wall

Over protests, Israel plans to double prayer space at Western Wall

The plan is aimed at appeasing American Jews and accommodating liberal Judaism at the Old City wall.

Britain confronts a familiar threat: homegrown terrorism

Britain confronts a familiar threat: homegrown terrorism

Two additional suspects arrested in hacking attack that killed a soldier, 25, in southeast London.

Hollande began his first day in office in the ornate Elysee Palace in Paris but ended it in Europe’s main sanctum of austerity, the modernist concrete chancellery in Berlin, underscoring the importance of the debate at hand. Adding extra drama to an already tense evening, Hollande’s jet from Paris had to turn back after it was struck by lightning shortly after takeoff. He arrived in Berlin on another plane more than an hour late for the meeting with Merkel, their first.

Hollande presented himself as the leader of a new vanguard in Europe’s battle against recession, favoring policies that stimulate growth through investment over the solutions pushed by Merkel, who holds that excessive debt is the root of Europe’s troubles. He sought to walk a middle line between his insistence during a year-long campaign on the need for growth measures and Germany’s equally strong focus on bringing down government deficits and debts.

The partnership between Merkel and the new French president will help determine Europe’s path at a crucial juncture, as Greece teeters on the verge of leaving the euro, Spain struggles to cut its spending and economists worry about the broader effects of euro-area troubles on the global economy. Merkel and Hollande will meet President Obama at Camp David later this week at the Group of Eight summit, where he is expected to press them on their response plans.

Greece was one of the top priorities of Merkel and Hollande’s meeting Tuesday night, where they greeted each other on a red carpet with a handshake, not the cheek kisses favored by Hollande’s predecessor, Nicolas Sarkozy. At the news conference after their meeting, Hollande took notes as Merkel spoke. Merkel remained impassive as Hollande spoke frankly of their differences, smiling only occasionally, including when he mentioned the lightning that had delayed him. Then they retreated for dinner and more discussion.

“I want to put growth at the heart of our debate,” Hollande said. “It’s true that the word was in the budget treaty, but it was not really emphasized.”

‘Indispensable stimulation’

Earlier in the day, after being sworn in at the Elysee Palace, Hollande said in a speech that he would “propose a new pact to our partners that will join the necessary reduction of public debts with an indispensable stimulation of the economy.”

Both Merkel and Hollande said they wanted Greece to remain in the euro zone. Greek politicians abandoned attempts Tuesday to form a government and instead opted for new elections, jeopardizing the troubled country’s ability to meet its financial commitments. But the French and German leaders suggested that they were willing to give Greece some time to work out its troubles, with Merkel striking a more conciliatory note than she has in recent days.

Loading...

Comments

Add your comment
 
Read what others are saying About Badges