Skip to comments.EU: German risks rift with France over economic healthcheck demands
Posted on 11/10/2012 9:35:54 PM PST by bruinbirdman
Germany demands probe into French economy
Germany's finance minister has reportedly asked a panel of top advisers to examine France's economic problems amid concerns that weaknesses could spread to the rest of Europe.
Wolfgang Schaeuble has asked the distinguished "wise men" panel, which advises the government in economic matters, to examine possible reform proposals for France, according to German daily Die Zeit.
Although a spokesman for the council dismissed the claims as outside "the council's legal remit," Lars Feld, an economist who sits on the panel, told Reuters: "Concerns are growing given the lack of action of the French government in labour market reforms."
Two officials also told Reuters that Mr Schaeuble had asked the advisers to consider drafting a report on what France should do.
Die Zeit and Mr Feld said that the discussions remained informal, but if agreed, it would be the first time in 49 years where the panel has compiled a report on any other country but Germany.
Mr Schaeuble's request denotes growing concern in Berlin and among private economists over the health of the French economy, which is set to miss a European Union goal for reducing its public deficit next year.
France has the second biggest eurozone economy, after Germany, but tension between the two countries has increased since French President Francois Hollande's election in May.
On Friday, a Bank of France survey predicted gross domestic product (GDP) would shrink 0.1pc in the last quarter of 2012, pushing France into a technical recession, defined as two consecutive quarters of contraction, as the third quarter is also expected to be negative.
Mr Schaeuble has been a close ally of France and has argued firm ties are key to achieving more European integration, a persistent German demand to solve the problems of
(Excerpt) Read more at telegraph.co.uk ...
refuse to give more to the EU and see what happens...
Besides France just elected Robespierre... of course the economy is going to crumble.
2. Spanish banks are broke
3. Public sector stifles competition
1 + 2 + 3 = France
Amazing protesters in Greece and France (and here) think that government should be able to spend as much as they like without consequences.
All Germany wants is more money from France and the UK.
All our Dims are living off of Owebama’s “Stash.”
The French are living on Hollande’s stash. What’s the problem? If you’ve got stash, you don’t need cash.