France 'to enter recession' as eurozone growth slows
16 replies, posted
[QUOTE]The eurozone economy will shrink more than expected this year with France sliding into recession, according to a gloomy European Commission report.
The Commission forecast says euro-area growth will shrink by 0.4% this year, down from 0.3% forecast in February.
France will go into recession this year with negative growth of 0.1% and unemployment rising to 10.9% in 2014 from 10.6% this year.
On Thursday, the European Central Bank cut interest rates on growth worries.
"Grappling with the aftermath of a profound financial and economic crisis, the EU economy is set to pick up speed only very slowly in the course of this year," the report said.
It predicted that France's deficit would rise sharply from 3.9% of GDP this year to 4.2% in 2014. That prompted the EU's commissioner for economic affairs, Olli Rehn, on Friday to say it would be "reasonable" to give France two extra years to meet the EU deficit target of 3%.
However, Reuters reported a French finance ministry official as saying that, despite Mr Rehn's comments, the country would stick to its aim of meeting the 3% target in 2014.
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Unemployment across the eurozone is expected to hit an average of 12.2%, up from 11.4% in 2012. In both Greece and Spain, it is expected to peak at 27%.[/QUOTE]
[url]http://www.bbc.co.uk/news/business-22395899[/url]
0.3% is nothing....
I'd be willing to bet that it's the panic of recession that damages the economy more than a 0.3% slowing
[QUOTE=download;40521970]0.3% is nothing....
I'd be willing to bet that it's the panic of recession that damages the economy more than a 0.3% slowing[/QUOTE]
You'll probably see the words austerity and recession dropped once the major EU banks have built up their capital sufficiently (depending on new EU regulation and law) and when many governments have completed 'fiscal consolidation'. It's then likely that each government will have a small increase in spending to sweeten employment figures etc. and declare the end of austerity, hopefully allowing consumer and business confidence to surge forward
God damnit.
[editline]4th May 2013[/editline]
who am I kidding, I'm pleased by this, the more pressure we're getting from the eurozone, the more people will riot about it and pressure our governement to finally stand up to austerity.
that or going back to franc, I'd pay my steaks 20 francs (3€) instead of 10€.
I have a strange feeling that Max must be involved in this.
[QUOTE=rhx123;40523212]I have a strange feeling that Max must be involved in this.[/QUOTE]
Max is the french government.
Welcome to where Britain's been for the last five years, France!
[editline]4th May 2013[/editline]
Does this mean you'll like us now?
Sacre bleu!
Oh my how surprising
[QUOTE=Hellborg 65;40523762]Sacre bleu![/QUOTE]
There's a post like this in every single thread about the french. It's getting old.
[QUOTE=Jamsponge;40523749]Welcome to where Britain's been for the last five years, France!
[editline]4th May 2013[/editline]
Does this mean you'll like us now?[/QUOTE]
Don't really know about how we're standing politically speaking atm, but the people love you guys. You're that one neighbor we tickle and give silly nicknames yet still like.
You're a bunch of rosbifs (french expression to qualify the brits, taken from roast-beef) and we're your beloved froggies I guess.
[QUOTE=Bliblixe;40523028]the more people will riot about it[/QUOTE]
Because that's totally a good thing right
Why can't they just, I don't know, anticipate and do it right away so we don't have to march on the streets leaving our jobs behind to make them understand?
[QUOTE=davidrb18;40524509]Because that's totally a good thing right
Why can't they just, I don't know, anticipate and do it right away so we don't have to march on the streets leaving our jobs behind to make them understand?[/QUOTE]
I'd love that, mind you. That's just not humans work.
Nothing will change until the majority has been pushed to their limits, you don't start a revolution with a full belly as we used to say.
eurozone sounds like a boyband where every member dresses as an offensive representation of a european stereotype
But austerity is the answer.
Just look at the baltic states.
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