The French economy has been in gradual decline for years, without any president or administration having done anything decisive about it. But now, ignoring the problems is no longer an option. The economy hasn’t grown in five years and will even contract slightly this year. A record 3.26 million Frenchmen are unemployed, youth unemployment is at 26.5 percent, consumer purchasing power has declined, and consumption, which drives the French economy, is beginning to slow down, as well.
From Der Spiegel we cite:
There is a more positive side of the story, which sometimes pales in the face of all the bad news. France is the world’s fifth-largest economy, and interest rates for government bonds have been at historic lows for months. The country is far from being on the verge of bankruptcy and cannot be compared with Italy or Spain, and certainly not with Greece. Nevertheless, France is ailing. And looking weak is something the French themselves hate more than anything else.
But overall, even if France cannot be compared to Italy or Spain and even less with Greece, it is affected by the same disease of Italy: corruption.
From Le Monde we cite:
from where we realize that UMP, le parti de Nicolas Sarkozy has less that a month for reimbursing a loan contracted for financing the campaign of the former President de la Republique.
Consequences of French Decline
This mixture of factors could jeopardize the entire European structure. For one thing, if France continues to decline, more and more responsibility will be shifted to Germany. “Germany cannot carry the euro on its shoulders alone indefinitely,” writes Harvard University economist Kenneth Rogoff. “France needs to become a second anchor of growth and stability.”
11th July 2013