French public debt down 2.5 percent last year

30th March 2007, Comments 0 comments

PARIS, Feb 12, 2007 (AFP) - France reduced its budget overspending to 2.5 percent of gross domestic product last year and brought its public debt down to 63.9 percent of GDP, official figures showed on Friday.

PARIS, Feb 12, 2007 (AFP) - France reduced its budget overspending to 2.5 percent of gross domestic product last year and brought its public debt down to 63.9 percent of GDP, official figures showed on Friday.

The data from the statistics institute INSEE were below the figures predicted by the government, which had forecast a public deficit of 2.6 percent and public debt of 64.6 percent.

A country's public deficit is the difference between state revenues and public spending. The public debt is the cumulation of past annual spending deficits.

France's EU partners launched an action against Paris in 2003 after the French public deficit breached an EU limit of 3.0 percent of GDP the previous year.

But the action was dropped in January this year after France brought its deficit below the three-percent limit in 2005 and was seen to be reducing it even further in 2006.

Both France's centre-right UMP government and the opposition Socialists have highlighted problems facing France over its public deficit and debt during campaigning for a presidential election at the end of April.

France's debt ratio has risen in recent years in breach of eurozone rules that state that debt must be no greater than 60.0 percent of output or be falling consistently and structurally towards this ceiling.

Copyright AFP

Subject: French news

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