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| Lower House in France Approves European Budget Discipline Treaty | Lower House in France Approves European Budget Discipline Treaty |
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| PARIS — The lower house of the French Parliament approved the ratification of a European budget discipline treaty by a large majority on Tuesday, with final adoption expected this week. | PARIS — The lower house of the French Parliament approved the ratification of a European budget discipline treaty by a large majority on Tuesday, with final adoption expected this week. |
| To the relief of President François Hollande, a Socialist, his party and its leftist allies in the Assembly passed the measure without needing the votes of the center-right. Some Socialists and their Green allies vociferously opposed the bill, which Mr. Hollande had originally criticized during his presidential campaign as a German-driven austerity measure. | To the relief of President François Hollande, a Socialist, his party and its leftist allies in the Assembly passed the measure without needing the votes of the center-right. Some Socialists and their Green allies vociferously opposed the bill, which Mr. Hollande had originally criticized during his presidential campaign as a German-driven austerity measure. |
| He had vowed to amend the treaty, but in the end he settled for a parallel “growth pact” and then pushed the bill on his own party as a necessary act to preserve European unity and the euro. France is the second-largest economy in the euro zone, and its effort to maintain leadership together with Germany was an important undercurrent to the vote. | He had vowed to amend the treaty, but in the end he settled for a parallel “growth pact” and then pushed the bill on his own party as a necessary act to preserve European unity and the euro. France is the second-largest economy in the euro zone, and its effort to maintain leadership together with Germany was an important undercurrent to the vote. |
| The treaty obliges the 25 members of the European Union who signed it in March to limit their deficits to prevent further debt crises. Countries are supposed to keep their budget deficits to 3 percent of gross domestic product, and countries with high debt must keep their structural deficits below 0.5 percent of gross domestic product. Only Britain and the Czech Republic refused to sign. | The treaty obliges the 25 members of the European Union who signed it in March to limit their deficits to prevent further debt crises. Countries are supposed to keep their budget deficits to 3 percent of gross domestic product, and countries with high debt must keep their structural deficits below 0.5 percent of gross domestic product. Only Britain and the Czech Republic refused to sign. |
| The bill passed by 477 votes to 70, with 21 abstentions and 9 deputies not voting. Some 282 members from the left voted for the bill, more than the 274 required for a majority. But 20 Socialists voted against it, and 9 abstained. Of the 17 members belonging to the allied Greens, 12 voted no and 2 abstained. Mr. Hollande and his prime minister, Jean-Marc Ayrault, have given no indication that they will try to discipline the Greens or dismiss ministers who opposed the bill. | |
| The Senate is expected to pass the bill as early as Wednesday, meaning that France will probably ratify the treaty by the end of the week. Opposition votes will be needed to pass it in the Senate, where the left does not have an absolute majority. The fiscal pact is expected to enter into force on Jan. 1, 2013, assuming that 12 of the 17 members that use the euro ratify it. Some have already done so, including Germany. | The Senate is expected to pass the bill as early as Wednesday, meaning that France will probably ratify the treaty by the end of the week. Opposition votes will be needed to pass it in the Senate, where the left does not have an absolute majority. The fiscal pact is expected to enter into force on Jan. 1, 2013, assuming that 12 of the 17 members that use the euro ratify it. Some have already done so, including Germany. |
| In a statement, Mr. Hollande praised the vote and the unity of the left in getting behind the bill without needing to rely on opposition votes in the Assembly, though he also praised the center-right for approving the bill, initially backed by his predecessor, Nicolas Sarkozy, as part of his efforts to work with Germany on solving the crisis of the euro. | |
| Mr. Hollande said that the treaty would pave the way for “stability, serious fiscal discipline but also growth” and that the large majority would give “France an extra boost to make its voice heard” in Europe. | Mr. Hollande said that the treaty would pave the way for “stability, serious fiscal discipline but also growth” and that the large majority would give “France an extra boost to make its voice heard” in Europe. |
| The president, whose popularity is plummeting, has committed to tax increases and a spending freeze in nominal terms to bring the 2013 budget deficit down to 3 percent of gross domestic product. | The president, whose popularity is plummeting, has committed to tax increases and a spending freeze in nominal terms to bring the 2013 budget deficit down to 3 percent of gross domestic product. |
| But the budget is based on a forecast for economic growth of 0.8 percent, which many economists believe is too high. The International Monetary Fund said Monday that it expected growth of only 0.4 percent in France for 2013, and a continuing rise in unemployment. | But the budget is based on a forecast for economic growth of 0.8 percent, which many economists believe is too high. The International Monetary Fund said Monday that it expected growth of only 0.4 percent in France for 2013, and a continuing rise in unemployment. |
| French business executives are unhappy at paying higher corporate taxes, which they say make it harder to hire. As the Assembly voted Tuesday, tens of thousands of French union members and workers marched to call for job protection, and paralyzed the port of Le Havre. | French business executives are unhappy at paying higher corporate taxes, which they say make it harder to hire. As the Assembly voted Tuesday, tens of thousands of French union members and workers marched to call for job protection, and paralyzed the port of Le Havre. |