With the US credit rating downgrade and the European Central Bank’s move to buy Spain and Italy’s bonds, FRANCE 24 takes a closer look at France’s financial position.
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If the UK( a net contributor to the EU budget), was to propose reducing or withdrawing all subsidies to farmers, and the rest of Europe agreed, what would be the French stance? Taxing the UK financial Institutions to pay for European debt is similar to this,the financial sector is of utmost Importance to the UK and Europe,It will move outside Europe with the burdens proposed.
A large Tax on the German Car industry would have the same effect on that great industry.driving production to other countries.
We should be trying to protect these Indusries, not destroy Them, as would happen to the UK finacial center if these regulations were not vetoed. Jealousy and faulty reasoning is only going to make things worse than they already are.
Indigenous, prosperous industries (the City of London is very Industrious) are the lifeblood of Europe,do not push the self destruct button the few that are left.
France is entirely responsible for digging itself into such a hole.
Successive governments have failed to tackle the unions head-on and consequently have allowed the public sector to flourish at the expense of the private sector.
Add that to the increasing regulation and bureaucracy which the private sector has to work with and you have a recipe for disaster.
I'm afraid that France is doomed in the mid to long term to years of austerity.
France has not appeared on the crisis map but cannot assume it
will not affect it. With Germany,France is assuming large financial obligations and the Euros troubles could grag France into the pit.How Greece and Portugal ever got into the Euro seems absurd.The finances of Greece,Ireland,Portugal and Spain should have been examined before entry and could well bring the fabric down
Politics appear to be playing a role in this credit rating. Many Country's have privatised their infrastructure, not so with France and actually, quite a few other countries. S&P's failure to account for these assets , just show politics are in the cards. France has huge assets which "balance" the debt, Although The current president certainly has tried to sell it all off. A sell off of the infrastructure would result in just another step to the corporate world.
Reality will always trump anything else in the long run. In the long run, debt is bad. All countries, all individuals put their futures at risk as they buy short term "money" in exchange for long term debt. Our forefathers were not wrong in avoiding debt. They were not fools.
So S&P are telling elected officials how to run the country, against the voters?
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