France pledges to meet 2003 spending plan

France will not spend a euro more than planned this year, Budget Minister Mr Alain Lambert said today.

France will not spend a euro more than planned this year, Budget Minister Mr Alain Lambert said today.

Mr Lambert told Europe 1 radio the government could reduce the civil service and improve government procurement in order to keep control of its finances.

"We will not increase taxes in 2003 in order to reduce the deficit further. We have a very clear budget strategy - we will keep a hold on spending, we will not spend one euro more than has been authorised by parliament", Mr Lambert said.

Raising new taxes would risk pushing France into recession, he said.

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Mr Lambert's comments came the day after Paris admitted its budget deficit in 2003 would hit 3.4 per cent of gross domestic product, pushing through the 3 per cent limit set out in the EU's Stability and Growth Pact.

That leaves Paris open to financial penalties from Brussels.

Nevertheless, French ministers say they are determined to stick by President Jacques Chirac's election pledge to push ahead with tax cuts designed to stimulate sluggish growth. Paris believes economic growth is the best way to control its budget deficit.