France Pans to Cut 45Bln Euros in Spending by 2013

France will slash state spending by 45 billion euros in the next three years to bring its public deficit back down to three percent of gross domestic product by 2013.

France will slash state spending by 45 billion euros (54.5 billion dollars) in the next three years to bring its public deficit back down to the European Union's limit of three percent of gross domestic product by 2013, Prime Minister Francois Fillon said on Saturday.

"We've taken a commitment to bring down our deficit from eight to three percent by 2013 and we will concentrate all of our efforts on it," Fillon said at a meeting of new members of his UMP party.

He said the government would cut the deficit by 100 billion euros over the next three years, with half from slashing spending and half from increasing revenues.

45 billion euros will be cut from state spending, he said, and closing tax loopholes would bring in 5 billion euros.

He is also counting on an economy rebound that would bring in an additional 35 billion euros.

The remaining 15 billion euros will come from halting temporary measures to boost the economy, the prime minister said.

The country's budget deficit had climbed to 144.8 billion euros in the wake of the financial crisis and the figure reached to a record high of 8.2 percent of gross domestic product in 2010.