The European Commission said it is closely watching the evolution of France's deficit following comments by finance minister Thierry Breton. "We do not know whether the French deficit this year will be within the 3 pct (of GDP) or not," commission spokeswoman Amelia Torres said, referring to the stability and growth pact limit. She said the commission has taken note of Breton's comments and "we will continue monitoring the situation in France". Yesterday, Breton said the government has lowered its forecast for growth in 2005 to "about 2 pct" from 2.0-2.5 pct previously. France's pledge to cut its deficit to below 3 pct this year was based on the previous growth target.