French Grand Prix to be called off

PARIS, France -- The French Grand Prix at Magny-Cours in July has been cancelled because of financial problems.

Marcel Charmant, president of the local council, said the company running Magny-Cours could not give F1 boss Bernie Ecclestone the guarantees he required ahead of the race.

In an interview with a local newspaper, appearing on Saturday, Charmant revealed that the 2003 Grand Prix made a loss for the second year running.

The department in central France which contains Magny-Cours will be asked next month to stump up 4.5 million euros ($5.34 million) to cover the 2003 deficit.

The cancellation of the July 11 event should be officially announced in the next few days by the sport's governing body, the FIA.

When the FIA published their 2004 calendar in September, the Magny-Cours race was said to be "subject to contract."

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