New French government hands itself 30 percent pay cut

French leader Francois Hollande''s new Socialist government got down to work on Thursday with the first order of business a symbolic 30 percent pay cut for the president and ministers. Following the cabinet''s inaugural meeting, spokeswoman Najat Vallaud-Belkacem said the salary reduction was to "set an example" as the government looks to tackle France''s troubled public finances.
The move was also aimed at drawing a distinction between Hollande and former president Nicolas Sarkozy, whose gross salary famously increased by 170 percent to 21,300 euros ($27,000) per month after he took office in 2007. The gross salaries of Hollande and Prime Minister Jean-Marc Ayrault will fall to 14,910 euros per month, while ministers'' gross salaries will drop from 14,200 euros to 9,940 euros per month.
The head of the main opposition centre-right UMP party, Jean-Francois Cope, denounced the salary cut as a "sham", noting that the new government had 34 members - 14 more than Sarkozy''s first cabinet in 2007. "Decreasing salaries by 30 percent cannot hide the simple fact that Francois Hollande''s government will cost a lot more to the taxpayer," he said in a statement.
However Sarkozy''s last government had 31 members including ministers and secretaries of state. Senior ministers said the government''s first concern would be to tackle the European debt crisis and push Hollande''s vow to shift the European Union''s economic focus from austerity to growth.
"The priority is to disentangle the crisis in Europe," Foreign Minister Laurent Fabius told news channel BFMTV. "I am profoundly European but we need a different Europe, a Europe that is much more focused on jobs." Finance Minister Pierre Moscovici reiterated that Paris would not ratify the EU''s fiscal austerity pact if it does not include measures to boost growth.
"What has been said quite clearly is that the treaty will not be ratified as is and that it must be completed with a chapter on growth, with a growth strategy," Moscovici told BFMTV. Moscovici also gave assurances that the Socialists would keep public finances under control. "We must reorient the reconstruction of Europe, but not by turning our backs on budget discipline," he added.