Finance minister says France won’t achieve EU budget deficit target

PanARMENIAN.Net - France's finance minister Michel Sapin has said the country will not achieve a 3% EU budget deficit target, BBC News reports.

The country's budget deficit will be around 4.4% of GDP in 2014, drop to 4.3% next year, and will not go below 3% until 2017, he said.

Sapin also lowered the country's growth projections for this year and next. However, France was not requesting a change in European Union rules, he said at a press conference.

The country's lack of growth reflected "an economic reality" that affects Europe, Sapin said.

Projections for growth were lowered from 0.7% to 0.4% in 2014, and down from 1.7% to 1% in 2015.

The government will maintain its current plan for 21bn euros (£17bn) of public spending savings in 2015 while not raising taxes during that year, he added.

France plans to cut public spending by 50bn euros by 2017.

The country has missed a number of budget deficit targets, and has struggled with high unemployment and low growth.

In August three French ministers resigned amid a bitter row over economic policy.