PARIS, Oct 1 - French Finance Minister Francis Mer said on Wednesday that a reform of the health system, key to helping France reduce its bloated public deficit, would be completed by next summer at the latest. France is under pressure from the European Union to slash its deficit, which it expects to hit 3.6 percent of gross domestic product in 2004 after four percent of GDP in 2003.
The European Commission wants the shortfall brought back below the limit of three percent of GDP set out in the Stability and Growth pact which underpins the euro single currency. Mer said that following a controversial reform of the pensions system designed to raise contributions, the government was ready to tackle its excessive health spending, provided this did not affect the quality of France's vaunted health system. "The reform of the health system will be delivered and implemented by next summer at the latest," Mer told parliament during question time. France faces a social security deficit of 13.6 billion euros in 2004, up from 8.9 billion this year, the government said last week. This will put pressure on the total public deficit -- the balance of funds for central government, the welfare system and local authorities -- just as Paris tries to tighten its belt.//