Budget deficit over limit admits French government

The French government admitted yesterday for the first time that its budget deficit would exceed three per cent of gross domestic product (GDP), breaching the limit set by the European Union's stability and growth pact. According to the Financial Times, French prime minister Jean-Pierre Raffarin told business leaders that it was "probable France's budget deficit exceeded 3 per cent as early as 2002".

Mr Raffarin hinted that the deficit would also remain high this year, and could stay ab...