FRENCH LABOR MINISTER: FRANCE “TOTALLY BANKRUPT”

The French labor minister, Michel Sapin, caused a stir on Monday when he described the country as “totally bankrupt” during a radio interview.

The comments will cause yet more embarrassment for French President Francois Hollande.

“There is a state but it is a totally bankrupt state,” Mr Sapin said. “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.”

The French government are seeking to reduce their massive deficit through a mixture of spending cuts and tax hikes.

The tax hikes are already causing a capital flight, as the wealthy leave the country to avoid Hollande’s proposed 75% tax rate on the wealthy.

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