18 October 2005, 12:03  French 2006 budget to include 2 bln eur windfall from pension transfers

The government's 2006 budget projections will include a one-time gain of 2 bln eur from several state-owned companies, mainly La Poste, who will transfer to the state their employee pension obligations, according to a report in French daily Les Echos. This move, similar to the state's absorption of the pension liabilities of Electricite de France (EDF) that resulted in a 7.7 bln eur windfall for the 2005 budget, will allow France to cut its public budget deficit to 2.9 pct of GDP, in line with its euro zone commitments, Les Echos said. Besides La Poste, the report said the Bank of France and the Paris Chamber of Commerce will also make large payments to the state as part of the transfer of their pension schemes

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