France hopes to head off the risk of EU fines with a pledge to cut its public sector deficit next year and get it below European Union limits in 2005 in a budget bill to be unveiled today.
Few secrets remained ahead of the presentation of the 2004 budget bill after weeks of official declarations and leaks, the last of which emerged in newspapers today after private briefings by officials.
Those reports highlighted a deficit trimmed to 3.6 per cent of GDP in 2004 from 4 per cent this year, and a fall to 2.9 per cent in 2005, as promised by Finance Minister Mr Francis Mer.
The budget bill is based on a prediction of economic growth of 1.7 per cent in 2004, the reports said, confirming an estimate made by Prime Minister Mr Jean-Pierre Raffarin a few weeks ago. Growth is expected to be a meagre 0.5 per cent in 2003.
Mr Mer and junior budget ministers scheduled a news conference for 5 p.m. this afternoon to present the budget.