Japan has warned France and its new president Francois Hollande that austerity measures must continue to be taken in Europe in order to stabilize the continent’s public debt crisis.
The result of the elections in France is seen as a backlash against measures aimed at fighting the eurozone crisis, as promoted by former French president Nicolas Sarkozy and German chancellor Angela Merkel.
“I want him (Hollande) to act based on understanding the schemes and thinking that we, the IMF, and the G-7 have cultivated up to now,” Japan’s finance minister Jun Azumi (photo) said.
“I think there is a chance they are becoming a destabilising factor,” Azumi said of Hollande’s victory. The new president of France intends to promote economic growth as an alternative to austerity. In Greece, voters have also punished the parties who have promoted austerity.
“We must closely watch whether there are speculative movements taking advantage of political factors,” Azumi said, referring to risks of financial attacks on currencies, including the yen.