FRENCH WILL PUSH TO POSTPONE DEBT AND DEFICIT IN GERMAN TALKS- VOSA Germany and France will try to reconcile divergent visions of how to fix Europe's economy this Monday when French prime minister, Manuel Valls, holds talks with Angela Merkel in Berlin. National Australia Bank's Head of Market Economics Europe, Tom Vosa says the French will push on fiscal adjustment and investment to try to postpone debt and deficit. SHOWS: LONDON, ENGLAND, UK (SEPTEMBER 22, 2014) (REUTERS - ACCESS ALL) 1. NATIONAL AUSTRALIA BANK HEAD OF MARKET ECONOMICS EUROPE, TOM VOSA, SAYING: JOURNALIST ASKING: "What do you think? Let's- give us your thoughts on Draghi ahead of this testimony on the back of the LTRO story last week. QE more likely?" VOSA: "I think the markets will look at it this way but if we look at the debate which came out of the Cairns over the weekend in the G20, there now seems to be a switch towards fiscal policy. I think the key part of Jackson Hole speech was okay, the ECB will do what it needs to do and it's fully committed but that there are other areas such as structural reform and indeed, this whole idea floated by Draghi that you can have the growth-oriented fiscal austerity idea where you cut some spending here, you boost some spending somewhere else, and it's going to work. And I think fiscal policy will be now the next issue." JOURNALIST: And of course, with the euro zone PMIs tomorrow as well, how do you think that's going to play into it? Do you think we're going to see more pressure on Draghi? VOSA: "I think we'll get to more pressure but I think what we have to remember is this week in Europe, we're going to get the first set of the ESA 2010 results. We know for the UK that's increased the level of GDP growth. Suddenly, if you're an Italian government, at around 10 o'clock today, you're going to be told that your output levels are a little bit higher so your deficit and your debt as a proportion of GDP are going to be lower. And that's where the fiscal space from Europe is going to come from." JOURNALIST: "All right. Fre...

• published: 22 Sep 2014
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