Nicolas Sarkozy's retreat from fiscal rectitude has been underlined by sharply higher government forecasts for future public -deficits.

Eric Woerth, the budget minister, told parliament on Wednesday evening that France's public deficit would lie at 6 per cent to 6.5 per cent in 2011 and 5-5.5 per cent the following year. He added that these projections were based on an optimistic assumption of 2.5 per cent economic growth in 2011 and 2012.