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EU's Almunia: France must keep reducing deficits

Fri Feb 8, 2008 10:11pm EST
 
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(For more stories from the Tokyo G7 meeting click [G7/G8])

TOKYO, Feb 9 (Reuters) - France must continue to pursue targets for deficit reduction, European Economic and Monetary Affairs Commissioner Joaquin Almunia said on Saturday.

Almunia said the issue would be discussed among euro zone finance ministers when they meet in Brussels on Monday.

"The Commission's opinion is that France must continue fiscal consolidation. They should see to it that they avoid any risk of excessive deficits," said Almunia, who is in Tokyo for a meeting of Group of Seven financial leaders.

Almunia said he believed that the projections for economic growth in France's deficit-control programme for the coming years may be too high.

"We think that the growth forecast framework on which the stability programme is based is a little bit optimistic," he said.

This was all the more the case now given the deteriorating outlook for economic growth in Europe, he said. (Reporting by Brian Love; Editing by Hugh Lawson)

 

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