Speaker 1: Bloomberg Audio Studios, podcasts, radio.
Speaker 2: News, political risk one down in the UK, One to
Speaker 2: go Sunday in France. But there's plenty of economic impact
Speaker 2: that's currently occurring in Europe as well amid what has
Speaker 2: been a very political narrative. We want to dovetail both together.
Speaker 2: We can do that over an Excellent Provinces the Economic Conference.
Speaker 2: Pascal Donahoe is a Eurogroup president. He's sitting down with
Speaker 2: I want to know Ni karenlyn Knan take it away.
Speaker 1: There's not a lot of political figures here in Excellent
Speaker 1: Province this year, but we do have Pascal Donahoe, the
Speaker 1: Eurogroup President, who's joining Mina from X.
Speaker 3: Very nice to be with you, Good afternoon, Thanks for
Speaker 3: having me on your program.
Speaker 1: First, let's actually discuss these comments from German Lindner, the
Speaker 1: German finance minister, who were saying that may actually be
Speaker 1: illegal for the ECB to inter if there's political turmoil
Speaker 1: in France.
Speaker 3: What's your reaction to this. Well, the ECB always act
Speaker 3: inside their legal mandates, they have in the past, they
Speaker 3: will in the future, and the ECB monitor as we
Speaker 3: do what is happening in financial markets. But the financial
Speaker 3: markets at the moment are clearly stable. The French economy
Speaker 3: from their death and borrowing point of view, is still
Speaker 3: stable as well, and I know the ECB will both
Speaker 3: monitor this situation and always be inside their mandates, as
Speaker 3: they have clearly demonstrated in recent years.
Speaker 1: So do you disagree with these germents where they're out
Speaker 1: of place?
Speaker 3: Oh, I can understand why Minister Lindner made those points.
Speaker 3: He is, of course monitoring what is happening within France,
Speaker 3: He's monitoring the debate that's underway from a public spending
Speaker 3: point of view. But as President of the Eurogroup, I'm
Speaker 3: aware of the need to take a perspective of what
Speaker 3: is happening in France, but also to recognize that our
Speaker 3: institutions have very clear mandates that they live within, and
Speaker 3: the ECB, whether it be in regard to France or
Speaker 3: any other element of the euro Area, are absolutely clear
Speaker 3: about what their mandate is and always and have always
Speaker 3: operated within us and I'm confident will continue to do so.
Speaker 1: In the future. So do you think Franci's critical difficulties
Speaker 1: will actually create any issues with ease.
Speaker 3: Well, I'm very much aware that there's an election that's
Speaker 3: just about to conclude in France. So I don't want
Speaker 3: to pre judge what will happen here in France, particularly
Speaker 3: as the people go to make their final decision here
Speaker 3: on Sunday, but do allow me to make a general point,
Speaker 3: and the general point is is that we all have
Speaker 3: a responsibility to manage our public finances carefully and safely.
Speaker 3: That has happened here in France in the past, and
Speaker 3: the maintenance of that approach is ultimately what allows our
Speaker 3: economies to grow again and what ultimately will also allow
Speaker 3: incomes and living standards to increase at a time in
Speaker 3: which we're still dealing with the effect of soaring inflation.
Speaker 1: I would see you've been president of the Eurogroup for
Speaker 1: many years. You are a countrapart of Brunulu Meier, the
Speaker 1: French finance minister who's been the French finance minister for
Speaker 1: seven years since Magon's first election, creating a lot of
Speaker 1: stability obviously in terms of the relationship with EU partners.
Speaker 1: How do you think that's going to change going forward?
Speaker 3: Well, I have to say the Minister Lemaire has been
Speaker 3: an exceptional colleague. He has led the French economy through
Speaker 3: so many great difficulties. But I also see him as
Speaker 3: a leader of Europe, and the difference that he has
Speaker 3: made at really important moments within the Eurogroup has been immense,
Speaker 3: and I've really valued my friendship with them and wish
Speaker 3: him the best in the future.
Speaker 1: And we're facing a least to us moment. Dead Craze
Speaker 1: is potentially influence. Like Brin Lumire has been warning.
Speaker 3: Well again, just allow me to make the general point
Speaker 3: that we have learned that when domestic decisions are made,
Speaker 3: financial markets can respond back quickly. And the general clear
Speaker 3: learning that we have in recent years is about the
Speaker 3: importance of maintaining market comfort and the importance of maintaining
Speaker 3: confidence in your future spending at taxation plans. And all
Speaker 3: governments are aware of that, whether that be the Irish
Speaker 3: government that I'm a member of, are I'm sure any
Speaker 3: other government that will be electant.
Speaker 1: Obviously there is an outright majority of the national Really
Speaker 1: in France, there is Jordan Badilla, who might become prime
Speaker 1: minister next week. Do you feel some clashes with the
Speaker 1: EU on fiscal rules as soon as this full.
Speaker 3: Well, I think we should just let the election conclude
Speaker 3: and allow the French Parliament to form the next government.
Speaker 3: That's very much a matter for them, and I'm not
Speaker 3: going to comment at this point on what it is
Speaker 3: still obviously a domestic political choice. But again I'll make
Speaker 3: the very broad points that cooperation between the Commission and
Speaker 3: member states is a really important ingredient in continuing to
Speaker 3: maintain a stability of the euro Area and all the
Speaker 3: members of the euro Area, and France has been a
Speaker 3: really important partner in that approach over the entire history
Speaker 3: of the Euro I look forward to working with the
Speaker 3: next French government. I look forward to working closely with
Speaker 3: future finance ministers of France and doing all I can
Speaker 3: to make the case for this approach to our public
Speaker 3: finances and the value of the stability of the Euro
Speaker 3: And I look forward to a good working and personal
Speaker 3: relationship with whoever that minister will be.
Speaker 1: But for example, Johann Badila has said E wants to
Speaker 1: get contributions, French contributions to the EU budget by three
Speaker 1: billion euros in order to find on some domestic proposals.
Speaker 1: Is that even possible?
Speaker 3: But these are the kind of comments that all kinds
Speaker 3: of different governments make it before negotiations begin on the
Speaker 3: next EU budgets. And I'm certain that you will hear
Speaker 3: many other governments make points regarding them wanting to reduce
Speaker 3: their contribution to the EU budgets, are looking for more
Speaker 3: from the EU budgets. So again, let's just allow a
Speaker 3: new French government to be formed, and myself on all
Speaker 3: colleagues within the European Union look forward to doing our
Speaker 3: best to having a warm and cooperative relationship with them.
Speaker 3: But that's let the election conclude.
Speaker 1: It seems like the relationship with Georgia Miloney, for example,
Speaker 1: in Italy has improved. Do you think Malopment can be
Speaker 1: compared to Georgia Miloney or is she much more on TEU.
Speaker 3: Well, I mean, I think the experience of Prime Minister
Speaker 3: Maloney in many ways is instructive for the discussion that
Speaker 3: we will be having here in the future. Prime Minister
Speaker 3: Malone has came into office, I made some very very
Speaker 3: important and I believe right decisions on behalf of Italy
Speaker 3: and behalf of Europe. And we have a very constructive
Speaker 3: economic relationship with Minister gian Carlo Georgetti, her finance minister.
Speaker 3: So that is another reason why I am reminded of
Speaker 3: the value of letting the election come to an end
Speaker 3: and when the government disappointed, hearing from them and doing
Speaker 3: all we can to have a good cooperative relationship.
Speaker 1: One good question on the UK, because obviously we had
Speaker 1: these spell of victory, we've played the Labor Party with Kirstarmer.
Speaker 1: Do you think this also has links to what we're
Speaker 1: seeing in France, basically the Labor of victory as a
Speaker 1: signal of anger after eight years of consequences of Brexit.
Speaker 3: So I think that is definitely an interpretation of us
Speaker 3: that the promises that were made with regards to breakfast,
Speaker 3: many of them in the eyes I think of British
Speaker 3: people have not happened in the way they would have expected.
Speaker 3: But I'd actually interpreted in a more positive and optimistic way,
Speaker 3: which is that we are seeing the British government, the
Speaker 3: British people make the decision to elect a stable and
Speaker 3: centrist government with the majority of the Labor government will
Speaker 3: have with the kind of people that are leadiness. It
Speaker 3: appears to me the British people has said we want stability,
Speaker 3: we want competence, we want a government that can lead
Speaker 3: the UK for the next five years. And I think
Speaker 3: that's a very positive signal. While of course, on a
Speaker 3: personal level, I wish all the members of the outgoing
Speaker 3: government the best for their futures.
Speaker 1: Finally, one really quick question on Ireland. The Ministry of
Speaker 1: Finance actually just moved the data of your budget to
Speaker 1: October first, as that means we are likely to see
Speaker 1: elections in Ireland.
Speaker 3: Please here, I'm afraid to disappoint you and Telly. The
Speaker 3: answer to that question is low. I expect the next
Speaker 3: general election in Ireland will be in March of next year,
Speaker 3: at the end of our mandays, at the end of
Speaker 3: our parliamentary term. The only reason the budget was changed
Speaker 3: by a week is we have the Eurogroup and the
Speaker 3: ecofin meeting happening in the second week of October and
Speaker 3: I can't be in Dublin and Brussels at the same time.
Speaker 3: So always changed for that reason and that reason.
Speaker 1: Only many political vettors to juggle. Thank you, so thank you,
Speaker 1: Ver morche Dono, the Eurogroup President. Life from this economy
Speaker 1: conferences in excellent for US.