France and Greece have more in common than many might think. They both have left wing governments that like to dole money out without much relation to their income, both refuse to reform within the EU. The major difference is that Greece has much higher debt per capita, and is more left wing. France failed to reform in accordance with the rules and after a recent review, should have been fined. Did the EU fine them? NO! They gave them another extension. Seems the rules only really apply to Greece, although at one time they didn't apply to any country. Warning lights are flashing over the Greek and French economies, analysts said on Monday, after a closely-watched manufacturing survey showed both nations remained "mired in contraction" in April. Turmoil in Greece, and concerns that the country could default on its debt and be forced out of the eurozone pushed Greek activity to a 22-month low, according to Markit's latest manufacturing barometer. The figures also suggested that the European Central Bank's €1.1 trillion bond-buying programme, which has helped to weaken the euro, has so far failed to lift France out of its chronic malaise. French manufacturing activity contracted for the 11th consecutive month in April, with the rate of decline the fastest so far this year. Markit also said employment levels fell for a thirteenth successive month in April. “The French manufacturing sector remains locked in reverse gear," said Jack Kennedy, senior economist at Markit. "Production levels were cut at an accelerated rate amid a steeper decline in new orders. This was despite a further fall in prices charged and the recent weakening of the euro, underlining the competitive challenge facing firms.” Markit's French manufacturing purchasing managers' index (PMI) fell to 48 in April, from 48.8 in March. This was lower than a flash estimate of 48.4 and well below the 50 level that divides growth from contraction. Greece's PMI contracted to 46.5, from a previous reading of 48.9...Tinkering around with this and that won't help Greece and France defy economic gravity. They simply spend far too much and suppress private commercial endeavour. Bond buying programmes, QE (or whatever it's called this week), ever inventive forms of taxation just won't cut the mustard anymore. 
Access Investments-Building Awareness - European Union-ROMANIA
Friday, May 8, 2015
France and Greece have more in common than many might think. They both have left wing governments that like to dole money out without much relation to their income, both refuse to reform within the EU. The major difference is that Greece has much higher debt per capita, and is more left wing. France failed to reform in accordance with the rules and after a recent review, should have been fined. Did the EU fine them? NO! They gave them another extension. Seems the rules only really apply to Greece, although at one time they didn't apply to any country. Warning lights are flashing over the Greek and French economies, analysts said on Monday, after a closely-watched manufacturing survey showed both nations remained "mired in contraction" in April. Turmoil in Greece, and concerns that the country could default on its debt and be forced out of the eurozone pushed Greek activity to a 22-month low, according to Markit's latest manufacturing barometer. The figures also suggested that the European Central Bank's €1.1 trillion bond-buying programme, which has helped to weaken the euro, has so far failed to lift France out of its chronic malaise. French manufacturing activity contracted for the 11th consecutive month in April, with the rate of decline the fastest so far this year. Markit also said employment levels fell for a thirteenth successive month in April. “The French manufacturing sector remains locked in reverse gear," said Jack Kennedy, senior economist at Markit. "Production levels were cut at an accelerated rate amid a steeper decline in new orders. This was despite a further fall in prices charged and the recent weakening of the euro, underlining the competitive challenge facing firms.” Markit's French manufacturing purchasing managers' index (PMI) fell to 48 in April, from 48.8 in March. This was lower than a flash estimate of 48.4 and well below the 50 level that divides growth from contraction. Greece's PMI contracted to 46.5, from a previous reading of 48.9...Tinkering around with this and that won't help Greece and France defy economic gravity. They simply spend far too much and suppress private commercial endeavour. Bond buying programmes, QE (or whatever it's called this week), ever inventive forms of taxation just won't cut the mustard anymore. 
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