UPDATE: French Official Growth Forecast Will Be Revised -Min
PARIS -(Dow Jones)- The French minister in charge of implementing the stimulus plan, Patrick Devedjian, Sunday said the government would eventually revise its current growth forecast for 2009 but didn't say when.
The French government's forecast of a growth of 0.2% to 0.5% in 2009 is "difficult" to maintain in the face of the stiff global economic environment, Devedjian said.
Devedjian also said that the government's stimulus plan was giving priority to corporate investments rather than to consumption.
He outlined that French consumer spending remained "relatively stable" and didn't tumble down as in the U.K. and the U.S., which explains why France has decided not to lower value-added tax rates.
Speaking in an interview with French radio RTL, Devedjian declined to say that an additional stimulus plan was considered, noting that it wasn't "wise" to call for a second plan when the first one hasn't been implemented yet and warning that talking about a second stimulus package could further depress consumers and companies.
Yet, he reckoned that "if more is needed," as stated last week by the French president Nicolas Sarkozy, then additional measures to support the French economy will be put into place.
Devedjian also hinted that the French budget deficit for 2009, currently seen as around EUR80 billion and representing nearly 4% of France's gross domestic product, could be higher as "bad surprises" could happen regarding tax receipts.
But "good surprises" could also happen, he said.
Devedjian also said the French government maintains its plans to cut civil servants positions as it seeks to make productivity gains.
-By Geraldine Amiel, Dow Jones Newswires; +33 1 40171740; geraldime.amiel@dowjones.com;
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Publié le 11 janvier 2009 Copyright © 2009 Dowjones
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