THE forecast French budget deficit for 1997, to be officially announced next Wednesday, will exceed 270 billion French francs (£32.5 billion), greater than market expectations, informed sources said yesterday.

But it was expected the government would say France would attain its goal of limiting its total public deficits (as opposed to the budget deficit alone) to 3 per cent of gross domestic product, the maximum allowed under the European Union's Maastricht Treaty for EU members wanting to take part in the single currency at the start of 1999.