France's Hollande says recovery will lead to lower taxes: Paper

French President Francois Hollande waves prior to the French Cup final football match between Rennes (SRFC) and Guingamp (EAG) on May 3, 2014 at the Stade de France in Saint-Denis, north of Paris. French President Francois Hollande told a Sunday
French President Francois Hollande waves prior to the French Cup final football match between Rennes (SRFC) and Guingamp (EAG) on May 3, 2014 at the Stade de France in Saint-Denis, north of Paris. French President Francois Hollande told a Sunday, May 4, 2014, paper he expects an economic recovery which will allow the government to lower taxes. -- PHOTO: AFP

PARIS (REUTERS) - French President Francois Hollande told a Sunday paper he expects an economic recovery which will allow the government to lower taxes.

"The reform effort is not over yet, but the economic recovery is arriving. This phase will lead to stronger growth, better competitiveness and a redistribution of purchasing power via lower taxes," Mr Hollande was quoted as saying by the Journal du Dimanche.

Mr Hollande, elected for a five-year term in May 2012, said “we have entered the second phase of my term”.

During the election campaign, Mr Hollande pledged to focus in the early years of his mandate on restoring France’s finances before working to improve households’ purchasing power once a lower budget deficit was on track.

On Tuesday, parliament approved a 50 billion euro deficit reduction plan that aims to cut France’s public deficit to the European Union’s ceiling of 3 percent of GDP by 2015.

“What I have learned is that France matters when its accounts are in good shape,” the paper quoted Mr Hollande saying.