French Finance Minister Mr Francis Mer said today he hoped France's 2004 budget deficit would be slightly under 3.7 per cent of gross domestic product.
Asked to comment on media reports that this Thursday's 2004 budget announcement would be based on a deficit forecast of 3.7 per cent of GDP for next year, he told Europe 1 radio: "We hope we can do better than that . . . that is, a bit lower." France's deficit was projected to be 4 per cent this year.
The euro zone Stability and Growth Pact sets a deficit ceiling at 3 per cent of GDP. But Mr Mer said it would be wrong to try and reduce France's deficit any faster.
"I have always said that if you want to manage things correctly, without destroying the momentum, one should not have as an ambition to cut deficits too strongly," he said.
He reiterated an aim to cut the structural component of France's deficit - that is, the part not related to ups and downs in the economic cycle - by 0.5 per cent points a year.
Mr Mer and Budget Minister Mr Alain Lambert are due to present the draft budget bill on Thursday.