France's budget deficit will reach between 3.5 and 3.6 pct of GDP in 2005, despite the government's pledge to reduce the figure to below 3 pct, while debt will continue to rise, reaching 67 pct of GDP in 2007, Le Monde newspaper reported, citing "confidential studies" by the Treasury. In 2004, France's budget deficit stood at 3.7 pct of GDP and debt was at 65.6 pct. Last month, the government reaffirmed its forecast that this year's deficit would be cut to 2.9 pct of GDP.