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PARIS - Pressure is building on president-elect Francois Hollandeto stand by France's austerity vows, with Germany's Angela Merkelsaying Europe is counting on them to resolve the bloc's debtcrisis. Mr Hollande's first foreign trip as president will be to Berlinnext week. Dr Merkel, in a letter to him that was released by her office,noted that he was assuming power in the European Union's (EU)second-largest economy 'at a time full of challenges'. 'It is up to us to take the necessary decisions for the EuropeanUnion and the euro zone, to prepare our societies for the futureand protect and advance prosperity in a sustainable way,' shewrote. But she also made clear she had no plans to renegotiate the fiscalpact setting tough budgetary rules for EU states that shespearheaded, despite Mr Hollande's call to rework it to do more tofoster growth. On Tuesday, Japan joined those raising concerns about his plans, asFinance Minister Jun Azumi warned Mr Hollande to keep France'sfiscal discipline in place. 'We want (France) to do what has beendecided so far,' Mr Azumi told a regular news conference, accordingto Dow Jones Newswires. 'I don't know whether Mr Hollande will immediately act on what hehas said in heated debates during the election campaign,' he said. 'But realistically, I think it is impossible (for European nations)to give up on fiscal-rebuilding efforts.' And a German member of the European Central Bank's (ECB) board alsowarned France to honour its fiscal commitments. 'I expect France to implement the fiscal pact unchanged,' Mr JoergAsmussen told the German daily Handelsblatt in an interviewpublished on Wednesday. 'In addition, I expect the new government to respect the promise toreduce the public deficit next year below the three-per cent (ofgross domestic product (GDP)) mark.' Mr Hollande promised cheering supporters on Sunday that he wouldreopen talks to ensure the EU fiscal pact focused on growth ratherthan simply imposing deficit-cutting austerity rules. EU president Herman Van Rompuy announced on Tuesday that the bloc'sleaders would meet on May 23 for an informal dinner ahead of an EUsummit on June 28 and 29 that is expected to focus on growth. Mr Hollande's transition chief Pierre Moscovici said the Socialistwould not give up on his plan for 'a European project that is morefavourable to growth' and that France's partners would budge. 'Wewill find a compromise. And I am convinced that things are startingwell,' Mr Moscovici told RTL radio. The uncertainty generated by Mr Hollande's election and thepolitical turmoil in Greece, where election gains by hard-left andextreme-right parties stripped the ruling coalition of itsmajority, have riled the markets. European stock markets slid and the euro fell on Tuesday, withsentiment dominated by uncertainty about the euro zone. France's CAC 40 index was down more than three per cent in lateafternoon trading. The Dow closed off 76.44 points (0.59 per cent)at 12,932.09, while the broader S&P 500 fell 5.86 (0.43 percent) to 1,363.72. And in Tokyo, stocks were 1.74 per cent lower on Wednesdayafternoon. But Mr Hollande's victory has not yet sparked the financial chaosthat Mr Nicolas Sarkozy warned of during the campaign, with most ofthe concern focusing on Greece. France raised 7.98 billion euros (S$11.4 billion) in short-termdebt on Monday, with lower interest rates paid to investors for twoof the three maturities offered. Mr Hollande, who beat Mr Sarkozy on Sunday, attended his firstofficial function on Tuesday at a World War II commemorationceremony. He joined the ousted president in laying a wreath at the Tomb ofthe Unknown Soldier beneath the Arc de Triomphe in Paris, as Francemarked the 67th anniversary of the end of World War II in Europe. The ceremony was a sign of French unity, he said. 'There are issues that unite us all, beyond the person of MrNicolas Sarkozy or of me,' he said. Mr Hollande formally takesoffice on May 15 and shortly thereafter travels to Germany for hismeeting with Dr Merkel. He will then travel to the United States for the G-8 summit on May18 and 19 and a Nato gathering on May 20 and 21. Mr Hollande's communications director Manuel Valls confirmed onMonday that France would use the summit to announce a French troopwithdrawal from Afghanistan between now and the end of the year. Mr Hollande's party must also set off on the campaign trail againin short order for France's June parliamentary elections, when hewill hope to secure a ruling majority. We are high quality suppliers, our products such as China 101 Nourishing Shampoo , China Fabao 101D for oversee buyer. To know more, please visits 101B Formula.
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