Paris will do everything necessary for its deficit, provides Lagarde
France will do "everything necessary" to bring its deficit to 6% of GDP in 2011, said Christine Lagarde in an interview with the Financial Times.
The economy minister told the newspaper of the City dated August 23 that the revision from 2.5 to 2% growth forecast will be based on which the budget in 2011, which was recorded at a meeting last Friday around Nicolas Sarkozy in the south of France, was "feasible and prudent" and not too optimistic as claimed by many economists.
The government, she said, is determined to do "everything necessary" to reduce the deficit in France from 8 to 6% of GDP in 2011 despite the revised growth down, with its implications on revenue state.
"It's a commitment very, very strong from the president and the government," said Christine Lagarde.
The objective is to reduce the deficit to 3% of GDP in 2013, five points below the level expected in late 2010.
The effort required on costs to compensate for lower tax revenue will be 10 billion euros in 2011, which will blow a plane to loopholes in the tax and social rather than by increases in existing taxes.
In an interview with Le Figaro to be published Monday, the budget minister Baroin confirms that the public deficit back to its level before the crisis is a priority and the planing of tax and social niches will save the public and preserve the fragile family policy.