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French 2015 budget to be based on 3 percent deficit goal - finance minister

Published 14/04/2014, 08:22

PARIS (Reuters) - Finance Minister Michel Sapin said on Monday France's budget for next year would assume a public deficit target of 3 percent of national output for the year, as promised to EU partners.

After saying earlier this month France wanted to negotiate the "rhythm" of its deficit reduction with Brussels, Sapin has since stressed that Paris would nonetheless respect its EU-mandated targets and timeline.

"The goal is for France to reduce its debt," Sapin told Europe 1 radio. "That's why it must be 3 percent of the deficit in 2015, not over. Three percent for 2015 - it's on that base that we are building our budgetary strategy and we will build our budget for 2015."

The European Commission and euro zone finance ministers have said Paris - which already last year was granted a two-year delay to reduce its public deficit to within EU limits by the end of 2015 - needs to honour its commitments.

Prime Minister Manuel Valls has said France will respect its commitments while resisting outright austerity. However many economists doubt it can meet the 2015 target, especially given a slight overshoot in the 2013 deficit to 4.3 percent of output.

Citing comments from European Central Bank head Mario Draghi on Saturday that further strengthening of the euro would trigger an easing of monetary policy, Sapin said his comments showed that he had taken into account the longstanding French stance.

"Yes, the euro is currently too strong, abnormally strong, and it's a bother for all European countries who use the euro and particularly France," said Sapin.

(Reporting By Alexandria Sage; editing by Mark John)

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