French public deficit widens to 4.1 percent of GDP in 2003

[La_Serpiente]

French public deficit widens to 4.1 percent of GDP in 2003

PARIS (AFP) - France's public deficit widened to 4.1 percent of output last year from 3.2 percent in 2002, the national statistics institute INSEE reported.

The shortfall, which INSEE reported to the European Union (news - web sites)'s executive commission, is well in excess of eurozone rules requiring member countries to hold public deficits to three percent or less of gross domestic product.

INSEE also said that France's public debt amounted to 63 percent of (GDP (news - web sites)) in 2003, up from 58.6 percent in 2002.

more...

French public deficit widens to 4.1 percent of GDP in 2003

[Frodo]

1. Where are we?

Public debt around 70-75% of GDP?

Annual deficit of 5% or so?



What are the consequences of breaking the Eurozone rules? And isn't Germany in the same boat?

[muriel_volestrangler]

2. Consequences are none, it seems

Yes, Germany was in the same boat as France in 2002. They persuaded the rest of the Eurozone to do nothing about it - which pissed off some countries that had struggled to meet the rules.

Some economists say the 3% rule is too restrictive - that you should be able to run higher deficits in some years, if they're made up for at other times. But without rules to specifiy what is OK, it seems to come down to the economic clout of countries that decides what they can and can't do - which doesn't look good for the future, in my opinion.

[PROGRESSIVE1]

3. This is a mistake. In the long run, high debt is bad for the economy....

and for the future generations, aka, your children.