EU on brink: France declares ‘state of economic emergency’ as Germany faces financial ruin
FRANCE is in a state of economic emergency, President Francois Hollande announced today, amid fears the worsening financial situation in Germany could topple the entire eurozone.
Francois Hollande has declared a state of economic emergency
Investor sentiment plunged as the socialist leader announced unemployment in France has surged to an 18-year high of 10.6 per cent – plunging the country into a new economic crisis.
It comes as Germany faces the most difficult start to a year in recent memory. Its own industrial production growth has slipped to ZERO per cent and customer confidence has plummeted in a catalogue of disasters for Chancellor Angela Merkel.
An increasingly desperate Mr Hollande has now said he will PAY French employers to hire people in a bid to boost jobs as he sought to restore confidence and said that it was time to address the country’s “broken” economic model.
He said: “Our country has been faced with structural unemployment for two to three decades and this requires that creating jobs becomes our one and only fight.”
France was facing an “uncertain economic climate and persistent unemployment” and there was an “economic and social emergency”, he said.
Firms will get €2,000 (£1,500) when they employ young, unemployed people for at least six months.
At the same time, the beleagured French leader hopes to make it easier for firms to fire people by putting a cap on the amount dismissed workers can claim in labour courts.
The plans will cost €2billion (£1.5bn) and are part of Mr Hollande’s attempt to secure his chances of re-election when the country votes in the presidential election next year.
Germany and France are the two biggest economies in the eurozone. Germany, which has a GDP of $3.4bn and France, with $2.4bn, are two of the six largest economies in the world.
Experts have warned that if the economies of both nations crumble it would trigger a domino effect which would bring the entire eurozone crashing down and severely damage the global economy..
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There is an economic and social emergency in France. We face an uncertain economic climate and persistent unemployment
President Francois Hollande
Peter Lundgreen, head of investment firm Lundgreen’s capital said: “German exporters are feeling the pain from the slowdown in business investments in many emerging market countries, as commodity prices have tumbled.”
Germany’s industrial output has helped underpin the country’s economic growth – but these numbers have been worryingly undershooting expectations for months.
Domestic consumption had powered the country’s growth over the past year but consumer confidence has now been falling since June last year, which indicates that consumption is set to fall too, Mr Lundgreen added.
Meanwhile in France, the country’s economy has struggled with low output and stagnant growth ever since the socialist leader was first elected in 2012.
Mr Hollande sought to reassure voters that France’s 35-hour working week is not under threat, but wants firms to hire more young people from troubled suburbs that are seen as potential hotbeds for terrorism and crime.
He added: “The time has come for us to build the economic and social model for tomorrow.”
Mr Hollande is fighting against the rising popularity of far right parties that want to France to quit the eurozone and re-instate borders with Europe in a bid to tackle the problem.
The Front National, led by Marine Le Pe, won the opening round of French regional elections in December.
As well as economic failure, Mr Hollande has been criticised for his handling of the country’s security after the Charlie Hebdo massacres and the more recent terrorist atrocities in Paris.
Earlier this week Angela Merkel admitted that Germany could fail to balance its books this year as it contends with the costs of the refugee crisis.
And today around 40 rebels from German Chancellor Angela Merkel’s conservative party sent her a letter demanding a change to her liberal refugee policy.
Amid collapsing poll numbers poll numbers about the country’s ability to handle the influx, which brought nearly 1.1 million newcomers last year, the Christian Democratic Union (CDU) lawmakers said Merkel must face up to reality.
They wrote: “In light of the developments in recent months, we can no longer speak of a great challenge — we are on the verge of our country being overwhelmed.”
It was the largest single expression of dissent by members of Merkel’s party since the refugee crisis hit Germany in September. The CDU has 256 seats in the Bundestag lower house of parliament.
“We do not want to divide the CDU parliamentary group.
We are only asking for the law to be applied,” one of the authors of the letter, Christian von Stetten, told AFP.
The developments in France and Germany came as analysts warned a global recession is now more likely than at any time since the financial crisis.
Francesco Garzarelli, co-head of global macro and markets at Goldman Sachs, said: “Things could spiral out of control.
“We could be underestimating the severity of the downturn in China and the spillover effects.”
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I know of no country in the world more stuck in the past then France. Socialism in the end fails, alway will always has, we had another go a few years ago in Britain, branded “New Labour” a complete and utter failure from day one, once having spent the last pound of everyone else’s money they failed gave up and lost the election leaving behind an utter mess. Its always the way, soak the rich, soak the rich again, let someone else pay just not me, force them to squeak, its unfair someone else has more them me, we will give you more, the socialist cry, but from where does it come? Higher taxes you hear the socialist scream, but in the end this is a diminishing resource. Let the workers have complete job security and a job for life, you hear them shout, make it impossible to sack even the laziest worker they shout. France is in such mess of its own socialist making by this logic. Somewhere inside the economy someone has to make and sell something useful, preferably to someone outside the economy. Check out how many people as a percentage actually work for the state in France, it will shock you.
The Euro will fail at some point. Its only a matter of when. The Eu will fail at some point its only a matter of when. Letting in one poor country after another is pretty dumb. At some point the payers into the system will complain. The big contributors are Germany and Britain. Lets consider Britain leaving, after the referendum in June, so the club looses one big cheque book, that is the significant point at which the system cracks wide open. Is Romania going to contribute anything? Poland? Italy ? Greece? Ireland ? Or God forbid Ukraine ? Don’t mention France, the lame duck of Europe, piling debt upon debt.
Yet those crack pot socialist in charge of the EU and France fail to take any useful action, and are actually contemplating allowing Turkey a fast track entry, 75,000,000 mainly Muslims and a country unable to pay its way. Speaking of which, each country in the Euro is bound by a rule preventing member states from running a deficit of greater than 3%, France has failed this test and rule for many years, making a complete mockery of fiscal probity, which does exactly what for the strength of the EURO? Yet they get away with it because of France’s special status. A founder country.
Last point, if the EU was a company, would you trust it??? Why would you if the accounts could not be signed off as safe and accurate, you have to ask the question why not, what problem do the auditors see as sufficient grounds to refuse to sign off the accounts? This unbelievable situation is in fact the case with the EU. If I am informed correctly the EU’s accounts have not been signed off for over a decade. Just what does this say about the EU or the Euro… Think about it, it is total unacceptable and horrendous.
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If you think ‘new Labour’ was socialist, you don’t know what socialism is. It was actually center-right, not left-wing at all. If you can’t even get that right, the rest has no chance.
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I agree with you Mr M Burgin, the EU accounts have not been signed off now for 17 years, the Auditors have been shocked by the level of fraud and of no accounting of where much of the money actually goes, plus the hugely generous salary and pensions liability, for present and previous employees, which is all unsustainable. If these Accounts were signed off and made public two thirds of the European Population would rise up. If the UK do vote to leave, with the loss of its second highest contributor, the EU would start to fall apart, and the project would need urgent serious reforms, or it would collapse within 18 months, plus they fear if the UK leaves, the people of France Holland and even Germany will demand a referendum too on staying in or leaving, plus with Germany now having allowed over a million refugees/migrants in, and millions more knocking on the door wanting a better life, sadly if they all are let in, they will end up destroying that utopia which they seek, because Europe cannot sustain this huge influx of people. Just like the UK there is a shortage of housing, and in the UK the infrastructure has been so neglected by successive Governments of both colours, it is now creaking and groaning, and needs serious investment just to stand still, to catch up experts say the Government needs to inject an investment of some £500 Billion, to build new houses both for sale and council houses, similar to the huge house building programmes of the 1930’s and post second world war. To achieve this, the Government would have to have another huge round of Quantative Easing, which they are reluctant to do, they just don’t have the money now thanks to Labours Disasterous running of the economy for 13 years, they did indeed spend all the money, the inherited a thriving economy, and a healthy surplus. The alternative is to borrow money to carry out the infrastructure investment desperately needed, which they are naturally reluctant to do. Labour should have fixed the roof while the sun was shining instead it borrowed, sold off the gold reserves at bargain prices, Gordon Brown raided the excellent pension pots we all had and wasted the money, not one council house was built under Labour. In the 1970’s where I live the local Council built a huge council estate, and even then the waiting list hardly went down. I fear things are going to get a lot worse before they get better even in the UK in the coming years, sadly Europe is likely to burn, with riots etc with all this massive invasion of migrants/refugees, it has already stared in Germany.
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it is not a soloist that holds the key to a failing state. be it the EU or the present british one . for was it not the tory thacher that liberalized the banking sector. of the big bang, that lit the fuse to the present day climate. having sold of the utilities and the social housing stock. not releasing the interconnection; with the funding streams that the state had with the rental income of its utilities and it’s rents from council home. suddenly decided to bring in the poll tax. to finance the revenue streams now lost to the country often forgotten. by the neoliberals. the benefits of nashonal owen structures and utilities in funding the society we call socialism as the miners fort to keep hold of there jobs. that later became reveal the truth and why the sell of of the utilities and it’s assets of the state to comply with their desire to join the treaty of maastricht a finalising of the lie that had been the EU not only had the people of briton been misled but a coordinated sell of of britons assets. to the private sector had become the reason revealed
no it was not the socilist among us that sold out the britis drem but the neow librelist among us just lik the bleairrites you menshond that often refers to a left wing afileashon in the laber partey . fown when they were eleted under took to cast out of there seats aney one that spok of socilison od council housing. in fact he mad a point of this on teve saying and i quot i would not suport a left wing soceilst govoment in labour yet he had been eleted on such a platform as leader i have no dout he miss led the people
he was fear from a soceist you could be that a labour leader could ever be ..Les Thompson L 1188138 CLP
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So, stuff from mid-january is “breaking news” now?
Also, I notice you only gave half of Garzarelli’s sentence to CNBC back in January The full sentence reads “”Things could spiral out of control, we could be underestimating the severity of the downturn in China and the spillover effects, but if you do macro analysis, if you look at hard numbers, the pass through from China to the rest of the world is limited,” (http://www.cnbc.com/2016/01/18/global-recession-fears-mount-amid-market-turbulence.html)
Which actually undermines the point you were trying to make and highlights this entire piece as a rampant fabrication.
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I’m guessing your a Corbyn fan then?
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The sooner the corrupt EU implodes the better, then hang the leaders for treason.
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YOU ARE SO RIGHT RONALD,,AND I AGREE,,,,,,,”BOOM” GOODBYE EU……KETCH IS AN APPEASING IDIOT,,,,,BRING BRITAIN TO ITS KNEES FOR WORTHLESS PIECES OF SHIT,WHO DONT DESERVE HELP,,,,,,OUR LEADERS ONLY WANTED A FLOOD OF VERY CHEAP LABOUR,,WELL HAS THAT BACKFIRED,THEY HAVENT THE BRAIN OF AN OMEABA,,,,,
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well ktetch, i for one come to the conclusion that you are one of the so called euro lovers who will bring britain down to a third world country. (we are not far off that now). nit picking other peoples comments, instead of agreeing to the utter corrupt, non elected people who run the so called eu is beyond belief. france is up in arms about the unemployed, yet has done nothing whatsoever about the merkel open door policy, where the refugees have no intention of working, or if they do will be cash in hand. merkel has done more damage to europe then hitler could have dreamed about, including her own country!!!! draw your dole/pension in peace, your secret is safe with me!!
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well ktetch, i bet you nitpick all your life!! who actually gives a stuff who is right or left wing? you are probably one of the pro euro lobby who will bring britain down to a third world country, (we are nearly there now) the reason for all the unemployment is all the so called refugees who are all scrounging money and have no intention to work, unless it be for cash in hand, the so called black economy. you will probably be up in arms if these people are not let in, forgetting the massive culture class we all have. they do not integrate and have no intentions of doing so. the so called west is welcoming them and giving them houses and money and not batting an eyelid!!! we cant even look after our own people yet give them everything!! it was obvious from the onset that these people were going to be a huge financial drain on every countries resources. then if we go into the soaring crime rate, eg; burglary, theft, RAPE AND THE GREEDY SOLICITORS WHO REPRESENT THEM, all with their fees paid, then no wonder we are all deep in the brown stuff. god forbid any of the crimes should happen to you, because you will then be bleating how did this happen! another sick person with head buried in the sand, who can pick on trivial matters, but hasn’t got a clue!!!!
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Time is ticking with terrorist and financial disaster with EU! Well all have known that it will soon explode!
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