In an article published last year, the economist speaks of the country that could pose the largest threat to the Euro: France. A section of the article states:
"Even as other EU countries have curbed the reach of the state, it has grown in France to consume almost 57% of GDP, the highest share in the euro zone. Because of the failure to balance a single budget since 1981, public debt has risen from 22% of GDP then to over 90% now.
The business climate in France has also worsened. French firms are burdened by overly rigid labour- and product-market regulation, exceptionally high taxes and the euro zone’s heaviest social charges on payrolls. Not surprisingly, new companies are rare. France has fewer small and medium-sized enterprises, today’s engines of job growth, than Germany, Italy or Britain. The economy is stagnant, may tip into recession this quarter and will barely grow next year. Over 10% of the workforce, and over 25% of the young, are jobless."
The Resilience Rating - which reflects the "stability" of the situation, not performance of its economy - of France has only recently grown beyond 70%. Click below to see France's Business Structure Map and rating.
For some reason, according to the press it appears that only Southern European economies are in trouble. This article is telling us that we are all, essentially, on the same boat. Let's not forget, the crisis is global.
www.ontonix.com
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