French parliament adopts 2009 budget

18th December 2008, Comments 0 comments

The newly-adopted budget will see public deficit swell to EUR 79.3 billion or 3.9 percent of gross domestic product.


PARIS – French lawmakers adopted Wednesday the 2009 budget that will see the public deficit swell to 3.9 percent of gross domestic product due to additional spending to boost the economy.
 
Lawmakers in both the National Assembly and the Senate approved the budget with a deficit of EUR 79.3 billion, up from EUR 57.6 billion in earlier drafts.
 
On 4 December, the French government announced a 26-billion-euro plan of investments and spending to boost the economy.
 
"The 2009 public deficit will reach 3.9 percent of gross domestic product, but the 2012 deficit will still come close to one percent of gross domestic product," said Budget Minister Eric Woerth.
 
Members of the eurozone are supposed to keep their public deficits under three percent of gross domestic product.
 
The budget adopted Wednesday also forecasts slower growth in 2009, between 0.2 and 0.5 percent, compared to the 1.0-1.5 percent forecasted in earlier drafts.
 
[AFP / Expatica]

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