French finance minister vows to stick to spending cuts Regardless of the various comments coming from the government in recent days, the EIU does not expect France to bring the budget deficit down to 3% of GDP by 2015, let alone to undershoot that figure. But the deficit is not the biggest challenge facing the French economy, which is having difficulty building any momentum behind its recovery. Too little has been done to implement long-needed reforms; to put it bluntly, unlike some of the euro zone countries that were worse hit in recent years, France has let the euro zone crisis go to waste rather than use it as a spur to structural reform. There are belated signs this year that this may now change. Francois Hollande remains a deeply ineffective president, but he has given his new reform agenda a better chance of success than it would otherwise have had by delegating it to Manuel Valls, a prime minister with the kind of instincts and credentials required to shake up the Parti socialiste and Frances powerful vested interests.
Posted on: Fri, 25 Apr 2014 14:12:51 +0000
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