BRUSSELS, July 6 (AFP): France faces the tough task of piloting Europe past financial market turmoil and record oil prices when it takes the helm of European economic policy this week under a cloud of controversy.
French Finance Minister Christine Lagarde is to chair Tuesday the first meeting of her EU counterparts since Paris took over the rotating six-month presidency at the beginning of the month.
The talks are to focus in particular on what can be done to cool red-hot oil prices or at least ease their impact on consumers and tightening oversight of credit rating agencies.
No stranger to controversy when it comes economic policy in Europe, French President Nicolas Sarkozy already stirred up flaps even before the start of its EU presidency by criticising EU trade chief Peter Mandelson and floating proposals to cut sales tax on fuel.
Moreover, France is under pressure from its EU partners to ensure its public deficit will not breach European rules, putting Paris in an embarrassing position as its presidency of the bloc gets underway.
However, Lagarde will likely skirt controversy Tuesday by focusing on concrete responses to some of the biggest challenges facing Europe concerning economic policy.
In particular, Lagarde is to sound out other EU countries about bringing more transparency to oil markets by publishing weekly stocks data, which France has long recommended.
"The information that we get now is untimely and full of lacunae," said a senior EU diplomat, adding that an improvement would provide data "in real time and reflect stock levels as best possible."
Lagarde will find support from her EU counterparts for French plans to step up scrutiny of credit rating agencies by requiring them to register in Europe.
Draft conclusions of the meeting, obtained by the news agency, said that measures so far were insufficient and that "further steps are needed and that regulatory changes might be necessary."
