PARIS (MNI) – French Finance Minister Francois Baroin said Friday
that France would meet its deficit target for 2011 even if forecasts
that the economy has begun to contract proved to be true.
A fourth quarter decline in the economy “will not change anything”
in the government’s ability to meet its 5.7% deficit target for this
year, Baroin said in a radio interview.
The French statistics institute Insee said Thursday that France has
entered what it believes to be a short recession, with the economy
expected to contract slightly in the fourth quarter of 2011 and the
first quarter of 2012.
Baroin said there is currently a divergence between the weak
confidence of households and businesses about the economic outlook and
the performance of the economy, which he said has essentially the same
growth trajectory as Germany.
Baroin said the government is not resigned to France losing its AAA
credit rating.
“To the question ‘Is France a solid investment?’ the answer is
‘Yes!’,” Baroin said.
— Paris newsroom, +33143715540, jduffy@marketnews.com
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