THE French prime minister, Mr Alain Juppe, said yesterday France would meet its goal of culling public deficits to four per cent of gross domestic product (GDP) in 1996 and three per cent in 1997 in preparation for European monetary union.

"We now know that we will hold to the target of three per cent," Mr Juppe told reporters. He also said rising tax receipts would allow France to get its deficits to four per cent of GDP this year.

Mr Juppe said he did not expect any revision of the Maastricht treaty criteria on monetary union - one of which is the target of getting deficits down to three per cent of GDP.

On the budget, he said there would be "at least 20 billion francs in reduction in taxes" in 1997 and added that he would present his tax reform plans around September 10th.

"It is all wrapped up, the budget, the social security financing law and fiscal reform," he told reporters.

He also rejected as erroneous the comments from a former finance minister Mr Alain Madelin that France was in a period of deflation.