France drifting towards euro zone danger: EU
BRUSSELS (AFP) - France could be slipping into dangerous territory with its bid to bring excessive spending back within EU limits next year expected to fail, the EU said on Wednesday.
Falling further behind euro anchor Germany, which is tipped to be near or at balanced budget between now and 2014, France will have a public deficit of 3.5 per cent of gross domestic product in 2013, compared with the French target of 3.0 per cent, according to the European Commission's Autumn economic forecasts.
"The difference with the official target mainly stems from divergent macro-economic scenarios, the one underlying this forecast being less benign," the Commission noted in the section of its report devoted to France.
The Commission tipped a "somewhat lower impact of revenue measures compared with the official estimates" as Paris tries to combat tax evasion, reduce corporate income tax credits and instill a "slightly more dynamic public expenditure."