New French Cabinet hands itself a pay cut

French leader Francois Hollande’s new Socialist government got down to work yesterday with the first order of business a symbolic 30 per cent pay cut for the President and ministers.

Following the Cabinet’s inaugural meeting, spokesman 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 Mr Hollande and former president Nicolas Sarkozy, whose gross salary famously increased by 170 per cent per month after he took office in 2007.

Senior ministers said the government’s first concern would be to tackle the European debt crisis and push Mr 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,” Mr Moscovici told BFMTV.

Mr 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.

“I want to be very clear, Francois Hollande has said it repeatedly, we must tackle the public debt, reduce deficits, and secure France’s situation. That is fundamental, a country that runs up debt is a country that is getting poorer.”

Mr Hollande, who defeated right-winger Mr Sarkozy in a May 6 vote, on Wednesday unveiled a government of mainly moderate Socialists and longtime allies.

Ms Vallaud-Belkacem said ministers had also signed a code of conduct against conflicts of interest and that Ayrault had ordered France’s Court of Auditors to prepare a report “on the state of our public accounts” by June 1.