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France says 2012 deficit target on track, Dexia could weigh
November 14, 2012 / 10:43 AM / 5 years ago

France says 2012 deficit target on track, Dexia could weigh

PARIS, Nov 14 (Reuters) - France expects to meet its public deficit target of 4.5 percent of national output this year, though aid for Franco-Belgian bank Dexia could add to the tally, the finance ministry said on Wednesday.

The European Union’s Eurostat statistics agency is to rule in a month whether 2.6 billion euros ($3.30 billion) in state aid for Dexia should be included in France’s deficit calculation, which would increase it to 4.6 percent of GDP.

“At this point, (Dexia) is not included in our public deficit target because we do not know how European accountants will treat the operation,” a finance ministry official said, presenting a bill updating the 2012 budget.

“It may be considered as a classic financial operation, as they have done in the past, and it wouldn’t then have any impact on the deficit. But it’s not impossible that they reconsider this view and classify it as spending to be included in the deficit.” ($1 = 0.7867 euros) (Reporting by Jean-Baptiste Vey; writing by Leigh Thomas; editing by Daniel Flynn)

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