Secure Da Bag
Veteran
France is about to cause global recession due to massive deficit
France certainly needs to do something. If some of us are starting to feel Britain is overtaxed, our neighbour has taken it to a whole new level.
State spending has hit 58pc of GPP, while taxes drain 47pc of the economy. And yet, despite that, the deficit is forecast to hit 5.7pc of GDP this year and will probably punch through 6pc, while its debt-to-GDP ratio is over 113pc, and higher if you take its share of the EU’s debts into account.
It is hardly surprising that investors are starting to feel nervous about lending the country even more money. Yields have already spiked above Greece and Portugal, two countries at the epicentre of the last eurozone crisis, and that is hardly reassuring, while the finance minister, Eric Lombard, has started warning about an IMF bailout. It is not, to put it politely, an encouraging outlook.