PARIS, March 17, 2010 (AFP) - France on Wednesday urged its big exporting neighbour Germany to cut taxes in order to stimulate domestic demand, amid growing tensions within Europe over how to balance the eurozone economy.
    Germany, the world's biggest net exporter after China, is clinging to its traditional economic model of maintaining large domestic savings and huge external trade surpluses, to the frustration of its eurozone partners.
    France would like to see German domestic demand for imported goods rise in order to even out trade imbalances within the single currency bloc, and Paris has been complaining more loudly than usual over Berlin's stance.
    "Our efforts should be shared," Finance Minister Christine Lagarde told RTL radio. "For example, Germany could cut taxes to encourage domestic demand.
    "An improvement in domestic consumption could, in particular, help us in terms of our exports towards Germany, which is our most important economic partner," she continued.
    "When an effort is needed in a shared economic zone like the eurozone, everyone has to play their part.
    "Those who are running deficits should reduce their deficits, and those who are in surplus should not become our single-engined driver," she warned, insisting Germany "could doubtless generate growth by other means."
    Germany's right-wing governing coalition plans tax cuts for businesses and households of 20 billion euros this year and 24 billion in 2011, but the measures have not all been approved by parliament and some may be shelved.