France budgets for 111 billion euro stability fund share

19th May 2010, Comments 0 comments

France reopened its 2010 budget to add in the 111 billion euros it has promised to contribute to Europe's new 750-billion-euro emergency stability fund, Finance Minister Christine Lagarde said Wednesday.

Leaders of Europe's eurozone single currency bloc agreed last week to set aside a trillion-dollar package to reassure markets that member states would not default on sovereign debt and to shore up the euro.

Lagarde said that the cabinet had added the French contribution to the fund to the text of an existing budget modification bill at its weekly meeting.

Speaking alongside her, Budget Minister Francois Baroin insisted that the measure would not increase France's own yawning public deficit, which is forecast to hit a record eight percent this year.

© 2010 AFP

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