France, Germany pledge unity to support economy against inflation

German Finance Minister Christian Lindner and French Finance Minister Bruno Le Maire attend a news conference, after Le Maire was awarded the Grand Cross of the Order of Merit of the Federal Republic of Germany, at the Ministry of Finance in Berlin, Germany July 25, 2022. REUTERS/Annegret Hilse/File Photo

PRAGUE, Sept 9 (Reuters) – France and Germany pledged on Friday to act together to protect households and companies from soaring energy prices, while also using fiscal policy to fight record high inflation.

French Finance Minister Bruno Le Maire and his German counterpart Christian Lindner made a show of unity at the start of talks for euro zone finance ministers in Prague, telling reporters they would cooperate on policies. read more

“It is a signal that France and Germany start this meeting together. It is a signal that we are standing shoulder to shoulder, not only here, but policy-wise as well,” Lindner said.

The pledge comes a day after the European Central Bank (ECB) raised its key interest rates by an unprecedented 75 basis points and promised further hikes, prioritising the fight against inflation even as the bloc is likely heading towards a winter recession and gas rationing. read more

“As finance ministers we have to meet our responsibilities as well,” Lindner said. “There has been a strong signal from the ECB to fight inflation. And so this…