PARIS (Reuters) - The head of France’s ruling Socialist party told Les Echos newspaper on Wednesday that it was “unavoidable” that France would abandon an EU target to cut its public deficit to 3 percent of GDP next year.
The government has promised to clarify the state of the economy and public finances after the publication of second-quarter GDP data on Thursday, which is expected to come in barely above zero. The French economy did not grow at all in the first quarter
Asked by Les Echos if the 3 percent deficit target for 2015 should be scrapped, Socialist party boss Jean-Christophe Cambadelis said: “It’s unavoidable.”
“Those ceilings were determined before the crisis. And, today, there is a new situation. There might be deflation. We need to take that into account. We need time to slash the deficit, to meet the 3 percent objective,” he said.
Reporting by Jean-Baptiste Vey; Writing by Ingrid Melander; Editing by Leila Abboud