CLEAN : France set to revise targets

The government is reconsidering its commitment to maintaining a public deficit of 3% of GDP by 2013, which was previously emphasized. While this decision may prevent further budgetary tightening that could harm economic activity, it also means the deficit target will not be met. France's structural effort in 2013 is significant, with a budgetary effort of around 36 billion euros, which is challenging in a bleak economic climate. The risk of the economy slipping into recession is high, and further austerity could ensure this outcome. The government's credibility is more at risk regarding its growth forecast of 0.8%, which is higher than most economic predictions. With new data, especially from Q4 2012, the government is likely to revise its growth forecast downward.

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