(Economist) France and the euro—The time-bomb at the heart of Europe

Posted by Kendall Harmon

The threat of the euro’s collapse has abated for the moment, but putting the single currency right will involve years of pain. The pressure for reform and budget cuts is fiercest in Greece, Portugal, Spain and Italy, which all saw mass strikes and clashes with police this week.... But ahead looms a bigger problem that could dwarf any of these: France.

The country has always been at the heart of the euro, as of the European Union. President François Mitterrand argued for the single currency because he hoped to bolster French influence in an EU that would otherwise fall under the sway of a unified Germany. France has gained from the euro: it is borrowing at record low rates and has avoided the troubles of the Mediterranean. Yet even before May, when François Hollande became the country’s first Socialist president since Mitterrand, France had ceded leadership in the euro crisis to Germany. And now its economy looks increasingly vulnerable as well.

Read it all.

Filed under: * Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeCredit MarketsCurrency MarketsEuroEuropean Central BankThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--Foreign RelationsPolitics in General* International News & CommentaryEurope--European Sovereign Debt Crisis of 2010France

0 Comments
Posted November 18, 2012 at 5:00 pm [Printer Friendly] [Print w/ comments]
Registered members must log in to comment.




Next entry (above): Anglican Network in Canada (ANiC) elects new Co-adjutor Diocesan Bishop

Previous entry (below): (CNN) Violence a daily reality as world leaders push for Israel-Gaza cease-fire

Return to blog homepage

Return to Mobile view (headlines)