French President Jacques Chirac said Tuesday that the failure of the World Trade Organization (WTO) trade talks in Cancun, Mexico must be overcome because an accord on international trade rules is in the interest of every one.

"France and the EU will do everything to ensure that negotiations resume and achieve international trade rules, which will be more favorable for growth, more fair and more equitable," he said in a speech in the Burgundy town of Auxerre.

"Let us recall that growth and employment go hand-in-hand with increased international trade. There is no exception to this rule, " he said.

Chirac also said France will assume its European responsibilities in all fields, notably on the budget rules imposed by the European common currency.

"Even in the name of growth and employment, we should act with wisdom and discernment. We will discuss it with the European Commission and our European partners in a spirit of mutual confidence and transparency," said Chirac.

France drew sharp criticism from the European Commission as it announced its public deficit will reach 4 percent of gross domestic product (GDP) in 2003, exceeding the euro-zone limits of 3-percent of GDP for the second straight year.

For Chirac, "the tax cut is one of the main parts of our policy for growth. Evidently it is not the cause of our deficit, which was worsening due to persisting economic difficulties and years of accumulation of non-financed spending."

"This deficit can not be written off at one go by sacrificing our growth, slowing down the growth of our neighbors or renouncing to investments," said Chirac.