Brussels, 14/07/2003 (Agence Europe) - The Ministers of Economy and Finance of the Euro zone Member States discussed their budget projections for next year in Brussels on Monday evening, and took note of the European Commission's intention of reducing estimations for 2003 economic growth. Under the chairmanship of Giulio Tremonti, the Eurogroup also discussed the "economic governance" aspects of the draft European Constitution.
The discussions on budgetary policy focussed mostly on state deficits in Germany and France: - due to the anticipation of planned tax cuts, the German deficit may in 2004 exceed the 3% threshold (as it has for the last two years already, see EUROPE of 2 and 3 July 2003); - the French government has forecast a deficit of just over 3.4% this year, and hopes to come back under 3% the year after.
Commissioner Pedro Solbes told the Ministers that economic growth in the Euro zone should be "in the order of 0.7%" in 2003, as against 1% in the latest estimates, and that the Commission expects growth to take off in the second half of the year. Mr Solbes repeated his appeal for better co-ordination of economic policies in order to restore consumer and investor confidence. EUROPE will come back on the results of the Eurogroup, whose discussions will end at around 10pm.