The European Commission today adopted a new set of recommendations urging France to get its swollen budget deficit in line with euro zone rules "by 2005 at the latest". The Commission called on France to cut its structural deficit by 1 pc of GDP next year and by at least 0.5 pc in 2005. Brussels also set a deadline of Dec 15 for the French government to explain how it intends to get its deficit below the euro zone limit of 3 pc of GDP.
"The commission considers that the budgetary adjustment in 2004 should be larger than the one contained in the (French) draft budget for 2004," a statement said. "Through such action, the French government should put an end to the present excessive deficit situation as rapidly as possible and by 2005 at the latest," it said.//www.fxcentre.com