French finance minister praises British economic record

Tuesday, 9 November 2004 12:00 AM

Nicolas Sarkozy, the French finance minister, told business leaders today that Britain was a model of economic growth for continental Europe to follow.

However, he warned them that if England wanted to shape the direction of the European Union, it had to do so from the inside.

Speaking to the CBI annual conference in Birmingham today, Mr Sarkozy said the French economy had to modernise and "normalise". That was not an easy task, he admitted, but the rapid pace of change and competition from across the world made it necessary.

He was full of praise for the British economy and the changes he said had been made under Margaret Thatcher and Tony Blair, and for the success of his counterpart Gordon Brown in modernising services and presenting his government as "a friend of business".

"We in France must follow this path," he added.

Earlier, Gordon Brown told business leaders that Britain should imitate the United States by building a shared national vision of itself as a country of "liberty, enterprise and opportunity for all". Such a national vision was essential to confront the challenges of globalisation, he said.

Mr Brown attacked "the old short-termism and the old complacency", saying Britain could not afford to postpone "fundamental long-term choices about our future".

Mr Sarkozy said France too was modernising. He had overseen reform of health and pensions, as well as privatising Electricite de France and France Telecom. Although all those processes had been difficult, none of them had provoked a 'crisis'.

He had also cut 10,000 civil service jobs - proof that it was possible to fire public servants and remain popular, he said.

Mr Sarkozy, who is also a candidate for the leadership of the UMF, the main right-wing party in France, noted that although France's economy was not as good as Britain's, it was outperforming those of most other European countries. He insisted also that it would not breach the Growth and Stability Pact in years to come: "We will meet that commitment."

The finance minister had strong words for his audience, however, over Britain's relationship with Europe. All Europeans - including the French - were certain that Britain must be at the heart of any union, especially given its economic strength.

The UK might be a friend of the United States, but it was still closer to Europe, he maintained. It must work with its continental partners as they had "the same problems, the same ambitions".

Mr Sarkozy warned that no country, no matter how strong, could survive alone in the global market - that was why he believed in Europe.

He told the audience they should not be afraid of Europe, and if they wanted to change it, they could do so best from the inside.

"If you wish Europe to resemble you, you must take your place in Europe," he said.

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