EU stability pact reform still on French agenda

15th December 2004, Comments 0 comments

PARIS, Dec 14 (AFP) - Finance Minister Herve Gaymard said Tuesday that France would continue to seek a reform of the European Union's Stability and Growth Pact next year under the EU's Luxembourg presidency.

PARIS, Dec 14 (AFP) - Finance Minister Herve Gaymard said Tuesday that France would continue to seek a reform of the European Union's Stability and Growth Pact next year under the EU's Luxembourg presidency.

The EU earlier Tuesday dropped disciplinary action against France and Germany because both countries are set to bring their public deficits in line with the pact's ceiling of 3.0 percent of output in 2005.

Europe has "acknowledged our efforts" in reducing the deficit though France must continue its efforts in managing public finances, Gaymard told the National Assembly.

France has said it would reduce its deficit next year to 2.9 percent of gross domestic product from an expected figure of about 3.6 percent this year.

The European Commission has forecast the French deficit would fall to 3.0 percent of GDP in 2005 from an expected 3.7 percent in 2004.

For Germany, the EU executive body projected the deficit to fall to 2.9 percent of GDP in 2005, from a forecast 3.9 percent this year.

© AFP

Subject: French News

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