France expects end to EU deficit process

7th December 2004, Comments 0 comments

BRUSSELS, Dec 6 (AFP) - French Finance Minister Herve Gaymard said Monday that the European Union executive will examine a proposal on December 14 to end a warning procedure over France's excessive budget deficit.

BRUSSELS, Dec 6 (AFP) - French Finance Minister Herve Gaymard said Monday that the European Union executive will examine a proposal on December 14 to end a warning procedure over France's excessive budget deficit.

"For us it's good news. It's the result of patient work to manage our public finances," Gaymard told a news conference after attending his first meeting of eurozone finance ministers since replacing Nicolas Sarkozy a week ago.

"In any hypothesis, the figure of 3.0 percent will be respected in 2005," he said, referring to the deficit limit laid down for EU countries in the Stability and Growth Pact.

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

EU Economic Affairs Commissioner Joaquin Almunia said late last month that he would soon propose to his fellow commissioners that France is on course to respect the stability pact and so the excessive deficit procedure should end.

That decision will now come at a European Commission meeting on December 14, Gaymard said.

© AFP

Subject: French News

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