国际英语新闻:France plans further austerity measures due to gloomy growth outlook

PARIS, Oct.21 (Xinhua) -- Expected sluggish economy was likely to force the French government to tighten further the belt and secure additional 5 billion euros (6.94 billion U.S. dollars) needed to meet public deficit limit of 4.5 percent of GDP in 2012, a local paper said on Friday.

"A new package of around five billion euros would be needed" to narrow down budget ratio in line with European safe line, local daily Les Echos especialised in economic reports said on its website, citing a government official.

The government has already announced the need to collect 12 billion euros (16.65 billion U.S. dollars) to avoid sliding back into recession by freezing public spending and reducing tax loopholes.

According to 2012 budget draft, French economy was expected to grow by 1.75 percent next year down from an initial estimation of 2.25 percent following sluggish economic activities and fears over a global financial turmoil.

On Tuesday, Finance Minister Francois Baroin estimated "too high" the government 2012 growth target and mentioned that new measures would be decided.

France's total accumulated debt will be higher in 2012 at 87.4 percent of the GDP mainly due of France's contribution to bail out debt-ridden countries such as Greece, Portugal and Ireland.

The 2011 debt rate was projected to reach 85.5 percent.