Jump to content
House Price Crash Forum
Sign in to follow this  
gruffydd

France To Slash State Spending By £45 Billion Euros

Recommended Posts

France will slash state spending by 45 billion euros (54.5 billion dollars) in the next three years to get its public deficit back down to three percent, Prime Minister Francois Fillon said on Saturday

Share this post


Link to post
Share on other sites

France will slash state spending by 45 billion euros (54.5 billion dollars) in the next three years to get its public deficit back down to three percent, Prime Minister Francois Fillon said on Saturday

So with a GDP of $2.86 trillion per year that's a spending cut of 0.63%. Brrrrr, I'm scared of the repercussions already.

Then you have to assume they will respect even that, which they NEVER do.

Share this post


Link to post
Share on other sites

all the 3/5/10 year BS.

they'll slash it by that much this year.

same here week tues, expect a 60bn 2/3 year plan announced that will be completed by september.

Share this post


Link to post
Share on other sites

So with a GDP of $2.86 trillion per year that's a spending cut of 0.63%. Brrrrr, I'm scared of the repercussions already.

Then you have to assume they will respect even that, which they NEVER do.

GDP isn't state spending. 45 Billion Euros must be quite a hefty chunk of government expenditure.

Share this post


Link to post
Share on other sites

GDP isn't state spending. 45 Billion Euros must be quite a hefty chunk of government expenditure.

i agree, some 5% maybe. i can only imagine w as been on the world cup fizzy pop steamboat, like myself.

edit sorry thinking of debts here, 40% maybe.

Edited by bendybogle

Share this post


Link to post
Share on other sites

GDP isn't state spending. 45 Billion Euros must be quite a hefty chunk of government expenditure.

French gvt expenditure is $1.144 trillion (40% of GDP) so the expenditure cut is 1.57%. That's not counting the automatic inflation adjustments that most probably mean expenditure will rise, not fall, over the next years.

I think there is a pattern that is easily recognisable here: countries announce frightening cuts that turn out to be non-existent; it reassures the bond markets.

To boot, you add a handful of famous Keynesians to say these measures are too harsh and it will be the end of the world, and people will actually believe it. Savers will be reassured, investors will regain confidence, etc. so spending and inflating can continue unabated.

Smoke and mirrors.

Share this post


Link to post
Share on other sites

Still they are all doing it. Massive cuts in Spain and Germany too. What do we get? A lousy 6 billion of cuts and we are in a worse position than any of them.

Share this post


Link to post
Share on other sites

Still they are all doing it. Massive cuts in Spain and Germany too. What do we get? A lousy 6 billion of cuts and we are in a worse position than any of them.

No no. The cuts are just as massive in the UK and Spain.

I watched a bit of American Beauty on TV yesterday. It has this memorable quote that politicos know very well:

Never underestimate the power of denial.

Share this post


Link to post
Share on other sites

Germany is alright, a weakening Euro is embarrassing their manufacturing sector with new demand.

Why aren't our entrepreneurs taking advantage of the weak Pound?

The failure of capitalism in the UK is again our weakness.

Bur hey, there will soon be an opportunity to buy up and break up some previously profitable businesses. It is what they do, all that they do. Thanks, Rover and the taxpayer.

Share this post


Link to post
Share on other sites

we are all starting to see the Eurozone's strategy, which is totally at odds with the USA and UK who are both locked into a debt death spiral. Here in the USA the Dems are still deluding themselves with the notion the gvt can spend its way out of recession. We are starting to see significant increases in inflation and falls in GDP. Stagflation is the curse of blind optimism.

Germany is alright, a weakening Euro is embarrassing their manufacturing sector with new demand.

Why aren't our entrepreneurs taking advantage of the weak Pound?

The failure of capitalism in the UK is again our weakness.

Bur hey, there will soon be an opportunity to buy up and break up some previously profitable businesses. It is what they do, all that they do. Thanks, Rover and the taxpayer.

Share this post


Link to post
Share on other sites

No no. The cuts are just as massive in the UK and Spain.

I watched a bit of American Beauty on TV yesterday. It has this memorable quote that politicos know very well:

Never underestimate the power of denial.

How can they be as massive in the UK whose GDPand public spending is greater but is only cutting 7bn € ?

Share this post


Link to post
Share on other sites

How can they be as massive in the UK whose GDP and public spending is greater but is only cutting 7bn € ?

I will attribute your misunderstanding to a deficient understanding of the political language :).

In this instance, the word massive as expressed by politicans really means non-existent. 'Austerity' must be understood to mean 'ginormous keynesian stimulus'.

Having adjusted your dictionary to reflect these realities you can say:

"European countries are implementing massive cuts as part of ruthless austerity programs".

Share this post


Link to post
Share on other sites

Germany is alright, a weakening Euro is embarrassing their manufacturing sector with new demand.

Why aren't our entrepreneurs taking advantage of the weak Pound?

Germany has manufacturers to take advantage of the situation. Britain doesn't.

Share this post


Link to post
Share on other sites

all the 3/5/10 year BS.

they'll slash it by that much this year.

same here week tues, expect a 60bn 2/3 year plan announced that will be completed by september.

Brilliant post

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.