Hollande Faces Europe’s Glass-half-empty Test On Budget Plan

ISAI Says French Entrepreneurs Skeptical on Policy

25, 2013, 7:29 a.m. EDT Europe stocks slide on U.S. debt nervousness Carnival shares drop after a broker downgrade Want to see how this story relates to your watchlist? Just add items to create a watchlist now: or Cancel Already have a watchlist? Log In By Sara Sjolin LONDON (MarketWatch) European stock markets traded mostly lower on Wednesday, tracking prior-day losses in the U.S., where discussions among lawmakers about raising the debt ceiling weighed on sentiment. The Stoxx Europe 600 index /quotes/zigman/2380150 XX:SXXP -0.24% dropped 0.2% to 312.45, erasing a 0.2% gain from Tuesday. SABMiller CEO: Whats on tap Alan Clark of SABMiller PLC on sharing power with his predecessor and selling beer on six continents. Among notable movers in the index, shares of Carnival PLC /quotes/zigman/321074 UK:CCL -6.69% /quotes/zigman/322132/quotes/nls/ccl CCL -4.89% lost 6% after Morgan Stanley cut the cruise-line operator to underweight from equal-weight. On Tuesday, the company laid out its profit expectations for the fourth-quarter, which were below analysts forecasts. On a more upbeat note, shares of ThyssenKrupp AG /quotes/zigman/157034 DE:TKA +3.57% jumped 4% after European investor Cevian Capital said it has acquired a 5.2% stake in the German steelmaker. More broadly, worries over the looming U.S.

Europe stocks slide on U.S. debt nervousness

The reaction from Brussels on the budget will set the tone of things to come, said Philippe Gudin, chief European economist at Barclays Capital and a former official in the French finance ministry . The retirement reform was disappointing compared with what could have been done — you almost hesitate to call it a reform. Budget Shortfall The commission has gained an increased say in the national budgets of the 17 countries that use the euro as their currency. Under rules Hollande himself agreed to this year, the commission must be consulted on draft budgets before they are voted by national parliaments. Finance Minister Pierre Moscovici travels to Brussels tomorrow after he presented the budget plan to the French cabinet today. Were marking a sea change today, he said in Le Monde newspaper. The 2014 budget is aimed at a return to growth and the fight against unemployment. Moscovici published the outlines of the government plans Sept. 11 before meeting with Rehn in Vilnius, Lithuania , on Sept. 13. Frances debt burden will start falling in 2015, he said today. The finance ministrys growth forecasts are — in a break from French tradition — in line with those of the commission. GDP will expand 0.1 percent this year and 0.9 percent in 2014, according to its predictions. Pension Plan For Rehn, the priority for Hollande should be keeping down taxes and labor costs in a country where public spending amounts to 57.1 percent of GDP — the European Unions second-highest after Denmark — and unemployment is at a 14-year high. France expects public spending to drop to 56.7 percent of GDP in 2014.