France announces public speading cuts to respect fiscal pledges

France, under pressure to honor its fiscal commitment, on Wednesday announced a 4-billion-euro cut in public spending this year and a cut of an extra 5 billion euros in 2016.

Raising the curtain on the government's Stability program for 2015-2018, Finance Minister Michel Sapin and Budget Minister Christian Eckert stressed "the consolidation of public finances is based on a slowdown in spending," which will help to lower the budget gap by 0.5 percent yearly for the coming two years.

The Socialists' fresh fiscal efforts fell short of EU's requests urging the eurozone's second largest economy to trim the gap by 0.8 percent and 0.9 percent respectively in 2016 and 2017.

But to Sapin, deficit recommendations of European partners "would have lowered growth and thus have prevented us from reducing unemployment."

In a three year financial roadmap, the government's main objective consists in reducing the deficit to 3 percent, the safe line mandated by the European Commission, the minister reiterated, arguing that the fresh efforts to clinch the belt would not hamper growth recovery.

"Reforms continue to make the French economy more competitive, growth creates more jobs, and public services more effective," he added.

For 2015, the ruling Socialists have previously pledged to save 21 billion euros to trim budget gap to 3.8 percent from an initial target of 4.1 percent of France's GDP.

They want to save 50 billion euros by 2017 by squeezing spending of local authorities and reduce public spending of social security. Endit