France today posted a public deficit of 3.0pc of GDP for 2002, barely keeping within the limits of the EU's Stability and Growth Pact. Finance minister Francis Mer said today that the deficit of 3.0pc means the European Commission cannot impose financial penalties against France under the Pact's procedures. Last month, EU finance ministers approved an official warning for France that its budget deficit risked breaking EU limits, a warning rejected by France. But EU officials in Brussels have responded to today's figures, stating that a discipline procedure will be launched against the French government even if the 2002 figure is confirmed to be 3.0pc. Prime Minister Jean-Pierre Raffarin said he did not intend to let the deficit rise this year but held to the government line that he will not impose an economic "austerity" policy in a time of economic uncertainty. The EU's Eurostat office has three weeks to verify the government data and has the right to dispute the figures. //www.fxcentre.com