Lambert: Priority for France is growth and employment

France's Budget Minister Alain Lambert said France supports the euro zone Stability and Growth pact and will respect its commitment to improve 2003 and 2004 finances, but the country's priority is to "return to growth and employment".

He also said 2004 nominal budget spending, which excludes the impact of inflation on real spending levels, will stabilise at the 2003 level.

France told the EU Commission that its public deficit this year would total 4% of output, exceeding the ceiling of 3% under the stability pact. This pact also requires euro zone countries such as France to move towards a surplus in times of growth.

Early October is the deadline for France to provide the EU Commission with a comprehensive plan to put its public finances in order next year or face a heavy fine.

Earlier, the commission said that the overall public deficit for the 12 euro zone countries could exceed 3%, mainly due to the French overrun.

The German deficit is also set to be far in excess of the limit this year, at 3.8%.

France will officially present its 2004 budget on September 24.