French Prime Minister Mr Jean-Pierre Raffarin said yesterday he is confident that the French economy will resume growth of 3 per cent but "the problem is knowing when".
He said also that cutting social charges and taxes remains a priority in the 2003 budget "taking into account the job situation".
French unemployment rose to 9 per cent in June, hitting a 21-month high.
Mr Raffarin's comments came after the head of the parliamentary finance commission, Mr Pierre Mehaignerie, expressed doubt last week whether 3 per cent growth in GDP was attainable in 2003 and suggested that promised tax cuts could wait until 2004 or 2005.
Most French economists have reduced GDP growth forecasts to less than 3 per cent for 2003. The International Monetary Fund also lowered its 2003 forecast for France to 2.6 per cent.
President Jacques Chirac was re-elected in May on a platform that included a one-third reduction in taxes over the next five years, and Mr Raffarin pushed through a 5 per cent tax cut shortly after he was named to the post. - (AFP)
