'Little chance' of France hitting growth forecast
AFP · 12 Feb 2013, 14:02
Published: 12 Feb 2013 14:02 GMT+01:00
- Most French believe France is ‘bankrupt’ (31 Jan 13)
- Minister insists France not 'totally bankrupt' (29 Jan 13)
- France mired in mild recession: central bank (10 Jan 13)
"There's no use in posting targets if they can't be reached," Hollande said at a news conference while adding that an adjustment to the 0.8-percent growth target for 2013 could come soon "if necessary".
The comment came just hours after France's accounting court criticised the government for holding to an over-ambitious 3.0-percent of output deficit target for 2013.
"The 3.0 percent deficit target has but few chances of being reached, notably because of a growth level likely to be below forecasts," said Cour des Comptes head Didier Migaud while presenting the watchdog's annual report.
Migaud, a former Socialist chairman of French parliament's finance committee, warned that public debt would grow in 2013 "to reach 90 percent of gross domestic product and will likely continue to grow in 2014 and 2015 despite planned austerity measures.
The accounting court stressed that the government had to focus much harder on cutting expenditure. The Socialist government of Francois Hollande meanwhile says that public debt will begin to contract next year.