France's Senate blocks 2017 budget draft

French upper house of parliament, the Senate, rejected Wednesday the Socialists' last budget that aims to lower the budget gap by 6 percentage points to 2.7 percent and accelerate growth by 1.4 percent.

Adopted by the National Assembly last week, the French budget draft for 2017 was blocked by 183 senators and 51 senators voted to support it, adding more pressure on President Francois Hollande, already haunted by broken promises to create wealth and jobs.

"The Senate opposes the whole text ... We do no want to be content with adjustments on a budget of campaign whose sincerity is debatable," said Alberic de Montgolfier, general rapporteur of finances committee.

In the last annual budget of their five-year governing term, the ruling Socialists aim to achieve a budget deficit of 3.3 percent of GDP this year before achieving the EU-mandated threshold at 2.7 percent of GDP or 69.3 billion euros (73.5 billion U.S. dollars) in 2017.

Looking to the growth rate, they initially predicted a 1.5 percent before lowering by one percentage point.

For next year, the government will increase public spending by 7 billion euros after pumping more to improve youth training, boost security and recruit more teachers.

France's total accumulated debt would be stabilized at 96 percent of GDP.

A joint committee composed of seven deputies and seven senators will examine once again the draft budget to bridge the differences between the parliament's two houses.

The National Assembly, which has constitutionally the last word in approving laws, was scheduled to pass next year budget before year-end. (1 euro = 1.06 U.S. dollar) Endit