France is being particularly watched on its commitments to cut high deficits as losing its triple-A rating would undermine the euro zone's bailout facility, the European Financial Stability Facility. In the space of less than three months, President Nicolas Sarkozy has responded by crafting two austerity plans to save €19 billion ($25.7 billion) by the end of next year. The second austerity plan came as the government slashed its 2012 growth forecast to gross-domestic-product expansion of 1% from 1.75% previously. Economists are now concerned that austerity could bite significantly into growth. Deutsche Bank analyst Gilles Moec said in a research note Monday that the two austerity packages and the tightening already programmed could take 1.2% off French GDP next year. Moody's noted in its report Monday that the growth outlook and the European debt crisis are "important risk factors" for the French government's finances. Mr. Baroin defended the government's austerity plans, which are mainly centered on tax increases in the short term, including VAT hikes. "These measures will not have a negative impact on growth of the French economy," he said. On a funny note : How about a list of actions eurozone holders can take to lessen the horror when the euro crashes in a disorderly fashion.1. Buy non-EU currency. Which ones?
2.Buy gold.
3. Buy property rather than have cash in the bank.
4. Stock up on long life essential food supplies, batteries, paper.
5. Ensure at least 6-9 months of regular medications.
Could anyone give (sell) us a "Survival kit?"... Civil unrest anybody?
3 comments:
The euro zone needs a new acronym. Instead of PIGS, I propose EEGs: Everyone Except Germany.
Seems to me that the tried and trusted Keynsian remedy of deficit financing isn't working with the markets anymore. In other words, neither the US nor Europe have much hope of getting much more credit from their bankers.
So the only alternative is - living within our means. Governments not spending more than their tax revenues, individuals paying down their loans. Both mean massive austerity measures, the poor (and the middle classes) getting poorer, and the rich staying rich.
Civil unrest anybody?
Well I believed the Euro was a disaster from day one, so yes gold seemed like a good idea ten years ago and I bought as much as I could afford. I looked like an idiot then, but feel quite clever now. When the property market bottoms out properly will be time for a nice new house. And I'm no elitist, having been insulted by the pro Europe idiots for ten years, and generally watched everyone else act like democracy, the nation state and holding politicians to account no longer matters, well I'm all out of sympathy
In 2005 Die Welt reported that Barroso had spent a week on the yacht of the Greek shipping billionaire Spiro Latsis. It emerged soon afterwards that this had occurred only a month before the Commission approved 10 million euros of Greek state aid for Latsis's shipping company – though the state aid decision had been taken by the previous European Commission before Barroso took up his post.[13] In response to this revelation, Nigel Farage MEP of the UK Independence Party persuaded around 75 MEPs from across the political spectrum to back a motion of no confidence in Barroso, so as to compel him to appear before the European Parliament to be questioned on the matter.[14] The motion was tabled on 12 May 2005, and Barroso appeared before Parliament as required at a debate on 26 May 2005.[15] The motion itself was heavily defeated.
In response to criticism for his choice of a less fuel efficient Volkswagen Touareg, amid EU legislation of targets drastically to reduce car CO2 emissions, Barroso dismissed this as "overzealous moralism".[16]
In April 2008, amid sharp food price rises and mounting food vs fuel concerns, Barroso insisted that biofuel use was "not significant" in pushing up food prices.[17] The following month, he announced a study that would look into the issue.[18] The backdoor approval of the GE potato, by President Barroso, has met a wave of strong opposition from EU member-states. The governments of Greece, Austria, Luxembourg, Italy, Hungary and France have all publicly announced that they will not allow the GE potato to be grown in their countries.
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