France will aim to trim its budget deficit to 2 per cent of gross domestic product in 2014, the country's budget minister said today, as it steps up efforts to match the pace of fiscal tightening in Germany.
France has already pledged to cut the deficit to 3 per cent of GDP by the end of 2013, from a gap the government expects will be about 7.8 per cent this year - slightly less than the 8 per cent it initially envisaged.
Speaking on Canal Plus television, budget minister Francois Baroin said the government would try to extend fiscal consolidation beyond the 3 percent mark in 2013, with an ultimate goal of bringing the budget to near-balance.
"If we want to go beyond that (2013 target), to 2 per cent in 2014 ... (then) we will have a slightly longer path but we need to be on that path," he said.
France is battling to bring a bloated deficit more into line with levels in faster-growing Germany as part of a programme of closer fiscal convergence between the euro zone's top two economies.
They are also conducting a joint inventory of tax and budget systems, and pushing for greater reforms of EU budget rules.
Germany has set itself the goal of whittling its deficit down to 0.3 per cent of GDP, which was tantamount to a balanced budget, Mr Baroin said.
France, which has promised EU authorities it will reduce its deficit to 6 per cent of GDP in 2011, is due to present a budget bill for next year on September 29th. The government is looking to find €100 billion of savings over the next three years in order to hit its targets.
Reuters