France revises 2003 economic growth forecast
Considering the consequences of the Iraqi war, the Government of France decided to revise the year-end target for economic growth and has taken same down from the previous forecast of 2.5% down to 1.3%. The main concern of the government making such a revision is the possible effects of the changing balances between the US Dollars/Euro parity on the economic targets. The expectations of the government include a post war budget deficit amounting to a 3.4% of the GNP. Such deficit is planned to be reduced to 2.9% by 2004. The economy experts refer to the target of reducing taxes in France by 30% until the year 2007 would not be possible under these circumstances, despite the governments determined statements with this regard. The previous decision required reduction of taxes by 5% in 2002, and 1% in 2003. As the budget deficit exceeding 3% is against the Euro criteria, France has been exposed to several warnings from the EU Commission.