Vraagtekens achter Franse berekeningen overheidstekort (en)

While French finance minister Thierry Breton this week assured EU ministers his country will meet its public deficit target of 3.0 percent of gross domestic product for 2005, one of his predecessors, Jean Arthuis, has called the calculations into question.

Jean Arthuis, member of the UDF centrist party and chairman of the Senate finance commission said on Tuesday (24 January), that the method used by the French government to reduce its central budget deficit was a "convenience", according to media reports.

He said a change to the French tax code had advanced payment of 2.0 billion euro in tax revenues from big companies, which had contributed to a fall in the central budget deficit to 43.5 billion euro for 2005, the AFP news agency reported.

"We have to be aware that the arrangement for collecting tax in advance from big companies is a convenience," said Mr Arthuis.

Revenues had also been boosted by an extra 750 million euro in dividends from state-owned energy group EDF and by 535 million euro from mobile phone companies, which had been found guilty in an anti-trust case.

If the French public deficit was higher than 3.0 percent of GDP in 2005, the country could face disciplinary action under the EU's stability pact - the rules underpinning the euro.