PARIS (MNI) – France will hit its public deficit targets this year
and next despite disappointing economic growth projects, Budget Minister
Jerome Cahuzac said late Tuesday.
Most analysts now expect domestic GDP growth of around 0.3% this
year — less than the 0.5% assumed in the campaign program of President
Francois Hollande, Cahuzac observed in a television interview.
“0.2 point less growth will not facilitate the budget process, but
it won’t compromise it to such an extent that the commitments of
[Hollande] will be ignored,” he said. “They won’t be.”
“France will keep its word: 4.5% public deficit in 2012 and 3% in
2013,” he said. “Will it be easy? Certainly not! It will be very
“This shows the need to relaunch growth in Europe,” the minister
argued. “From this viewpoint, the E120 billion [stimulus] package
apparently agreed is good news for me, even if this relaunch clearly
will not come in a few weeks or months or quarters.”
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