FRANCE and Germany will fail next year to meet the government deficit criterion set for participation in the single currency, according to projections by the Organisation for Economic Co-operation and Development, OECD secretary general Mr Jean Claude Paye has said.

He said the projections had been drawn up at the end of March.

"On the basis of the policies announced up to the end of March, France and Germany in 1997 will exceed the public deficit objective, limited to 3 per cent of GDP," Mr Paye said. "The OECD projections yield a public deficit figure of more than 3 per cent.

The French and German governments have frequently stated they expect to meet the budget deficit criterion next year.