French finance minister hints at cut in savings target owing to low inflation


AFP

PARIS–France’s finance minister on Tuesday hinted that the country’s much-vaunted aim to cut 21 billion euros (US$28 billion) in public spending next year could be in jeopardy due to low inflation. France has promised to get its public deficit down to the European Union ceiling of three percent of gross domestic product next year but this looks increasingly difficult given stagnant growth in the eurozone’s second largest economy.

France’s government has predicted a deficit of “around four percent” of gross domestic product this year, an upwards revision from the 3.8 percent forecast previously.