The French public deficit could rise to 3.4 to 3.6 per cent of output this year because the economy is weaker than expected, the French budget minister said today.
But budget minister Mr Alain Lambert said he would do all he could to hold down spending as he acknowledged France might breach a 3 per cent limit for the second year running.
"In 2003 we said that we feared the deficit might be between 3.4 and 3.6 per cent. Effectively, the economy is slowing down and this has the effect of reducing state revenue," he said.
France said at the beginning of March that the public deficit would be 3.4 per cent of output this year, but would fall to less than 3 per cent, the maximum permitted under the euro-zone Stability and Growth Pact, next year.
For 2002 the French public deficit was 3.1 per cent of gross domestic product.
Today Mr Lambert said that France would control its public expenditure.
"We will get a hold of spending. I assure you that I will do everything in my power to see that not one more euro will be spent in 2003 than was authorised by parliament," he said.
AFP