Debt crisis: France puts brakes on austerity "I admit it is not the three percent, but the movement is going in the right direction, as both the France national audit office and the European Commission recognise," he said. Spending cuts in 2014 would be made in the state budget, local budgets and the social security budget, Hollande said, reiterating that the government maintained its longer-term goal of a zero deficit in 2017. Mr Hollande said France would continue to try and boost growth through public investment, notably with funds gathered through tax-free savings books and by state investment companies. But he was downbeat about jobs, saying that if economic growth in 2013 was not better than the 0.1 percent the European Commission expects, unemployment would rise further. "But if forecasts for one or 1.2 percent growth in 2014 materialise, we will see new job creation again," he said. He said his cabinet would focus on jobs for young people. "When youth unemployment rates in some countries are above 50 percent, 25 percent in France, there is a risk of explosion, and I do not want to jeopardise national cohesion" he said. He said his government expects a report on pension reform to be completed this summer. That will be followed by talks between unions and employers with a view to implementing pension reforms in 2014.