Wednesday, September 26, 2007
The euro is now hugely overvalued for France, though not for Germany. It is hammering French luxury exports and forcing Airbus to mull yet another €1bn of cuts
The news reaching the desk of Christine Lagarde at the French ministry of economy, finance, and employment is dreadful, and getting worse by the month. The budget deficit is ballooning to €42bn (£29bn). The trade deficit is smashing records. Business confidence has fallen to the lowest in five years.Her own prime minister blurted out on Friday that France was now "bankrupt", with no chance of halting its relentless slide down the global growth league unless there is a drastic change of course.