UPDATE 1-ECB’s Noyer says French deficit targets realistic

* Noyer says budget deficit can reach 3 pct of GDP by 2013

* Calls for stronger banking regulation, caution on bank tax

(Adds details, quotes, background)

PARIS, June 13 (BestGrowthStock) – European Central Bank board
member Christian Noyer on Sunday said France’s aim to bring its
budget deficit down to 3 percent from 8 percent of GDP by 2013
was realistic.

Noyer was echoing a similar pledge by Prime Minister
Francois Fillon at the weekend who said France planned to cut
its deficit by 100 billion euros over the next three years, in
part by slashing expenditures and eliminating tax exemptions.

France is keen to voice its commitment to fiscal austerity
ahead of a meeting in Berlin on Monday between President Nicolas
Sarkozy and German Chancellor Angela Merkel to discuss European
economic governance. For related story see [ID: nLDE65C0EL]

Germany last week unveiled its biggest austerity push in
more than half a century and has been pressing Paris to emulate
its efforts and unveil concrete savings measures.

“I am totally confident in the fact that it is possible to
get there,” Noyer said in an interview on France 5 television
and RFI radio, talking about France’s deficit target.

“The measures (to cut the deficit) are complicated to
decide. We need not only measures on (public) spending and
receipts but also structural measures,” Noyer added.

Addressing the issue of governance, Noyer said was he was in
favour of strong banking regulation but called for caution
regarding taxes on banks which could harm the economy.

“One has to be very careful,” Noyer said, referring to the
idea of introducing taxes on banks which could raise borrowing
costs.

Investment Research
(Reporting by Astrid Wendlandt and Laure Bretton; Editing by
Matthew Jones)

UPDATE 1-ECB’s Noyer says French deficit targets realistic