Could France Become Another Greece?

It seems a week does not go by without more pictures of Greeks rioting and protesting their current economic situation. Just this week the Greek Prime Minister has said that Greece is in the midst of a Great Depression.

Now economists are looking closely at the French economy; France numbers are pointing towards the same outcome as Greece. France currently has an eye wateringly high debt to GDP ratio:  86.1% of GDP (146% if ECB liabilities and bank guarantees are included). Although the UK and America have similar levels of indebtedness they have the mechanisms to do something about it. They also have far more political will to change the socialist policies causing the problem.

In France there is no political will at present, to change the labor laws, and encourage free enterprise. Since coming to power in May, Francois Hollande has already reduced the pension age, increased taxation on the wealthy, increased public spending, and increased the money governments are to pay to the EU. He has also opted out of EU regulations to cap nations budget deficits.

If France continues on this present course the economic death spiral seen in Greece will come to France some time soon.

For more analysis of the situation see The Telegraph

One thought on “Could France Become Another Greece?”

  1. i think gay people shuold be allowed to marry eachother and have it called marrage. I think its just discriminating when they dont allow it to be called marrage just because the two people are of the same sex. Marrage is supposed to be the union of two people who love eachother, it shuoldnt matter what your gender is.

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