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