EU to discuss French economy

The European Commission has said the state of the French economy and its budget deficit will be an "important subject" of its talks tomorrow with French prime minister Jean-Pierre Raffarin.

Commission spokesman for economic and monetary affairs Gerassimos Thomas said France has until October 3 to come up with proposals to cut its deficit, which looks set to exceed the stability pact limit of 3% of GDP in 2004 for the third consecutive year.