Prime Minister Dominique de Villepin said France's public sector deficit will "most likely" come in below 2.7 pct of GDP in in 2006 and could fall to 2.5 pct in 2007. Villepin added that he is "convinced" France can lower its public debt as a proportion of GDP to 55 pct by 2012 from the 64.6 pct recorded at end-2006. This year the government is targeting a one percentage point drop in debt. Finance Minister Thierry Breton had already said on Jan 29 he expects a deficit in 2006 of close to 2.6 pct, well below the 3.0 pct ceiling set by the euro zone's Stability and Growth Pact. The Stability and Growth Pact also requires governments to run a debt of below 60 pct of GDP. Speaking to the press today, Villepin said: "We have already made a lot of progress.... we will confirm this trend with a public (sector) deficit most likely below 2.7 pct in 2006."