European Commission believes France will miss 3pc deficit target – Le Monde
THE European Commission sees France missing a target of cutting its public deficit to three percent of output next year because of slower-than-expected growth, France's daily Le Monde reported today.
The newspaper said the EU executive saw economic growth in France of just 0.4pc next year, half the 0.8pc level on which the government's 2013 budget is based.
Citing what it said was a draft of Commission forecasts due to be published later on Wednesday, Le Monde said the Commission concluded that the deficit go al can only be met in 2014. France's 2012 deficit is seen around 4.5pc of output.
That outlook would chime with the views of many economists who believe Socialist President Francois Hollande has based his budget on over-optimistic growth targets as the country struggles to rebound from three quarters of stalled output.
Hollande's fiscal credibility is under scrutiny from foreign investors who are concerned France's record-low bond yields do not accurately reflect the fragility of its economy.