Unrealistic cuts expected from France : McCreevy

Finance Minister Charlie McCreevy has said it was unrealistic to expect France to cut its budget deficit by 1.0% of Gross Domestic Product next year.

McCreevy was speaking after the Euro Commission had given France another three weeks to comply with its Budgetary target following a meeting of finance minister in Brussels late last night.

In the interim, France has said it can only manage a deficit cut of 0.7pc next year, but is pledging to meet EU budget rules by 2005.

Finance Minister Francis Mer told fellow ministers that he would unveil credible efforts to get his country's deficit under the limit of 3pc of DGP by 2005.

The postponement was backed by all the eurozone countries except Austria, Finland and the Netherlands.

The matter will be discussed again at a Finance meeting on November 24 and 25.