French President Admits Country will miss Deficit Targets

After trying to upgrade his popularity by touring the French provinces President Hollande made a very unpopular admission.

President Francois Hollande has admitted France will miss its target on lowering the budget deficit this year.

France’s deficit will “without a doubt” be 3.7% of its output this year, he said, above the 3% he promised to cut it to during the election last year.

The 3% deficit target is also one set by the European Union – but most of the major euro nations are in breach.

The news comes as France’s economic progress was criticised by a European Central Bank board member.

“The reform course in France seems to have floundered,” Germany’s Jens Weidmann said.

“The crisis that we are facing is a crisis of confidence, and this confidence cannot be gained if we postpone the tackling of the root causes of the crisis,” Mr Weidmann said, referring to France, Italy and Cyprus as countries that still face tough financial situations.

The German central banker has suggested a political way out of the crisis instead of looking at the ECB for answers.

via BBC

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