France resolute on cutting deficit, Lagarde tells FT

23rd August 2010, Comments 0 comments

French Finance Minister Christine Lagarde said her country would do "whatever it takes" to cut its budget deficit in an interview with the Financial Times (FT) published Monday.

Her comments came after the government pledged to narrow the public deficit, covering central and regional government spending along with social welfare, from a record eight percent of GDP this year to six percent in 2011.

President Nicolas Sarkozy has also promised not to raise general taxation.

Lagarde told the FT that France was determined to "do whatever it takes" to hit the target. "That is a very, very strong commitment on the part of the president and the government," she said.

Last week, France also cut its growth forecast from 2.5 percent to two percent. Largarde also described this move as "realistic and prudent".

© 2010 AFP

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