French budget sets out deficit cuts but 'no austerity'

The French government unveiled its 2015 budget on Wednesday, setting out how it would bring its public deficit to within EU limits two years later than planned in what it said was a plan that fitted the weak economic environment.

Under the budget presented by Finance Minister Michel Sapin, the public deficit is set to fall from 4.4 percent of GDP this year to 4.3 percent next year, 3.8 percent in 2016 and 2.8 percent in 2017 - below the EU-mandated threshold of 3 percent.

French finance minister, Michel Sapin.
Bruno Vigneron | Getty Images
French finance minister, Michel Sapin.

Previously, France had promised EU partners it would bring its deficit below 3 percent by next year.

Read MoreFrance admits it will miss 2015 deficit target

"The rhythm of deficit reduction is appropriate to the situation. No further effort will be demanded of the French, because the government - while taking the fiscal responsibility needed to put the country on the right track - refuses austerity," the budget statement said.

Follow us on Twitter: @CNBCWorld