France upholds 2016 growth, deficit targets

Two weeks ahead the release of 2016 budget draft, French Budget Minister Michel Sapin on Wednesday stuck to previous estimates of 2016 growth and deficit, reiterating promises to honor financial commitment by 2017.

Under the financial plan, the eurozone's second largest power, upheld a previous growth forecast of 1.5 percent for next year and 1 percent in 2015 "in line with the consensus of international organizations," Spain said.

As to the budget gap, the Socialist government set the deficit at 3.8 percent of gross domestic product (GDP) this year before falling to 3.3 percent in 2016. It pledged to lower the figure below the European Union (EU)-mandated threshold of 3 percent in 2017.

The country's debt-to-GDP ratio will stand "noticeably below 100 percent in 2016 before gradually falling", the French minister announced.

For 2015, the ruling Socialist party pledged to save 25 billion euros (28 billion U.S. dollars) to honor its fiscal commitment after breaking its financial pledges several times since they took power in 2012.

They postponed by an extra two years their target to reach the 3 percent goal, the rate mandated by the EU, with plans to keep its deficit at 2.8 percent of GDP by 2017.

In March, the EU offered France extra time to bring its budget gap to the safe line. However, the EU urged the French government to take additional measures to deliver its promises (1 euro = 1.12 U.S. dollars) Endit