France will strive to rein in deficit: FM

7th September 2005, Comments 0 comments

PARIS, Sept 7 (AFP) - France must do everything possible to reduce its public spending deficit to 3.0 percent of output, the maximum ceiling permitted under EU and eurozone rules, Finance Minister Thierry Breton said on Wednesday.

PARIS, Sept 7 (AFP) - France must do everything possible to reduce its public spending deficit to 3.0 percent of output, the maximum ceiling permitted under EU and eurozone rules, Finance Minister Thierry Breton said on Wednesday.

The minister also said that in 2007 "France would return to a level of growth which it should never have left... of 3.0-4.0 percent".

The government expects the economy to grow this year by 1.5-2.0 percent.

Describing high deficits as a French "illness", Breton said that "everything must be done" to bring France's public budget deficit under 3.0 percent of gross domestic product, as called for under the euro zone's Stability and Growth Pact.

He was speaking at a conference on the economy organised by the governing UMP political party in Paris.

On Monday, France told the EU Commission that its budget deficit would stand right at the pact's 3.0 percent limit this year, a slight upward revision to its previous forecast of 2.9 percent.

Copyright AFP

Subject: French news

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