Paris warns oil price could hit French growth

28th September 2004, Comments 0 comments

ARGENTEUIL, France, Sept 28 (AFP) - Budget Minister Dominique Bussereau said Tuesday that French economic growth would be reduced by one percentage point if oil prices stayed at USD 50 per barrel throughout 2005.

ARGENTEUIL, France, Sept 28 (AFP) - Budget Minister Dominique Bussereau said Tuesday that French economic growth would be reduced by one percentage point if oil prices stayed at USD 50 per barrel throughout 2005.  

Speaking on the sidelines of a UMP party meeting in Argenteuil, outside Paris, Bussereau said that the government had based the 2005 budget on an average oil price of USD 36.5 per barrel and growth in gross domestic product of 2.5 percent.  

Bussereau noted that oil prices had swung widely in recent months, fluctuating between USD 28 and USD 50.  

"Thus, for the moment one cannot have a negative view on all that," he said. "Nevertheless, one must know that if that persists, one would be in difficulty."  

He pointed out that France was less vulnerable to high oil prices than during the 1973 oil crisis.  

"We depend a lot less on oil and that (growth) would simply slow down a little."  

About eighty percent of France's electricity is generated by nuclear power.

© AFP

Subject: French News

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