France has told the European Commission that its public deficit in 2005 is expected to be 3% of output, in line with EU limits but exceeding an earlier target of 2.9%, the economy ministry said today.
The wider-than-expected shortfall is still in line with France's treaty obligations under the EU's stability and growth pact which require the government to keep the budget no higher than 3% of gross domestic product.
'In line with the normal timetable, the government informed the European Commission of its public deficit for 2005 today,' the economy ministry said in a statement. 'The forecast for the public deficit in 2005 is for 3% of gross domestic product.'
French Prime Minister Dominique de Villepin, questioned in a radio-television interview about a commitment by the government to reduce the deficit this year to less than 3% of output, had said: 'It is a commitment which we confirm.' Until now the government has spoken of a target of 2.9%.
The public deficit, as defined under the Maastricht Treaty which created the single currency, covers the excess of spending over revenue with regard to the central government budget, social welfare budgets, which in France far exceed the government budget, and local authority budgets.
The French public deficit was 3.7% of GDP in 2004, or €59.8 billion and 4.2% in 2003, or €65.8 billion.
