French Budget Minister Jerome Cahuzac defended on Tuesday the government financial roadmap that targets to narrow public deficit to 3 percent next year despite wane economy.
Speaking to RTL radio, Cahuzac dismissed growing concerns over ambitious budget goals based on a 2013 economic growth forecast of 0.8 percent that is widely seen too optimistic.
"I think growth for 2013 that we hope will be well that one," the minister said.
"Nobody should forget that if France does not keep its word, that is to say, does not achieve this target of 3 percent of public deficit next year, its signature would be devalued which would lead to an increase in its borrowing costs," he added.
Socialist government's 2013 budget, which is French toughest belt-tightening in decades, aims to narrow the public gap by 1.5 point percentage to 3 percent of GDP in 2013 by collecting more than 30 billion euros (38.75 billion U.S. dollars) via high taxes on the rich.
However, record high joblessness and grim economic outlook increased risks of below-target growth that would force the government to make more savings in a context of climbing public disenchantment. (1 euro = 1.291 U.S. dollar)