France has new finance minister

FRANCE: Former France Telecom chief Thierry Breton has been appointed France's fourth finance minister in less than a year

FRANCE: Former France Telecom chief Thierry Breton has been appointed France's fourth finance minister in less than a year. He says he will stick to the same policies as his predecessors.

"I will conduct my actions in line with those of my predecessors - Hervé Gaymard, Nicolas Sarkozy, of course, and Francis Mer," Mr Breton told reporters after taking over from Mr Gaymard in an official finance ministry ceremony yesterday.

The conservative government desperately needs to restore its battered credibility after Mr Gaymard's resignation following a public outcry over his state-paid luxury apartment.

Mr Breton rapidly addressed concerns that his close ties to industry chiefs could affect his decisions as finance minister and announced he had stepped down from all the company directorships he held. These included board seats at Axa and Schneider Electric, among others. He said he also planned to sell his 11,000 telecom shares.

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Mr Breton is an expert in rescuing companies and his debt-slashing skills will come in handy at the helm of the economy, which has exceeded the EU deficit ceiling three years running.

The government has pledged to bring the shortfall back below the EU limit of 3 per cent of gross domestic product in 2005, but that prediction is based on a growth forecast of 2.5 per cent which many economists consider too optimistic. - (Reuters)