Chasm opening between weak French and strong German economies

Comments (7)
reality-again wrote:

This economic chasm has been in existence for a long time, and so far it has been masterfully hidden by the French elites: Government officials, bankers, business people, media, etc.
The whole ‘core vs. periphery’ notion which put France and Germany on par was either an illusion or a deception, depending who you are…
The truth is that the French economy works in a way that’s fundamentally flawed, and it’s going to be extremely difficult and painful to fix.

Feb 21, 2013 7:28am EST  --  Report as abuse
pbgd wrote:

Even if it was not intended that way, Europe seems to be splitting between North and South. A Northern Group under leadership of Britain and Germany with the Scandinavians, and a Mediterranean Union as Sarkozy predicted, under the leadership of France. The seemingly unbridgeable French-German schism appears to be re-emerging. Italy as the EU’s third-largest economy may now become the deciding factor — not an encouraging prospect given Italian politics.

Feb 21, 2013 8:21am EST  --  Report as abuse
unionwv wrote:

A socialist was elected President in France, taxes on “the wealthy” were increased to 75%, capital is fleeing from Frabnce and, once again, an eloctarate suffers from its own ignorance.

Feb 21, 2013 8:28am EST  --  Report as abuse
tiderhawk wrote:

French need to take some more days off and reflect on why this is.

Feb 21, 2013 9:05am EST  --  Report as abuse
ARJTurgot2 wrote:

Well, Maggie Thatcher was correct, you do eventually run out. Not only that, the other people expect their interest payments.

Feb 21, 2013 12:10pm EST  --  Report as abuse
Yesyes wrote:

@pbgd I don’t really see France as being the leader of anything in the next couple of decades. They, like Britain, have been living off the benefits of their colonial past for the last century, and this has up until now allowed them to maintain a ridiculously large military and an over generous credit rating, but those benefits are starting to dry up and they’re gradually waking up to the reality that they are no longer global superpowers, but two small countries that have no chance of competing with countries that have ten times their population and far more natural resources at their disposal.

I wouldn’t put too much hope in Italy. They’re essentially in the same position as Greece, only they’re being given preferential treatment because they are “too big to fail”. In my opinion, the EU country to watch out for in the next couple of decades is Poland. The Poles have been spreading all over Europe in the last decade, many of them setting up successful businesses, plus the Polish economy isn’t in nearly as dismal a state as the rest of Europe. Given also the linguistic advantage and well established trade relationships they have in Eastern Europe, I can see them eventually becoming far more important within the EU than either France, Britain or Italy. Romania is another one to watch out for, although it’ll probably be a while before they get their act together

Feb 21, 2013 12:44pm EST  --  Report as abuse
Anthonykovic wrote:

“…France has major structural problems.”
What most business people know but what no one dares to say, right?

A lazy overpaid work force, militant unions, zealous and ridiculous anti-business government regulations. France uses the same money as Germany – the Euro is not to blame. France’s problems are homegrown, and that is where the solution also lies. Until the French change their attitude and smarten up, they will continue to fall behind Germany.

Feb 21, 2013 1:15pm EST  --  Report as abuse
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