France under Dark Skies

What is happening with France?   Since Monday, the scattered French government says long over President Francois Hollande reign. Besides the wrong team management and dividing opinions among left-politicians and socialists, France has recorded a stagnating economic expansion. The Eurozone is majorly dragged behind because of France and Italy with now the German economy showing signs of sluggishness.   While ex-economy minister Arnaud Montebourg has accused the European Central Bank (ECB) of being too stern, German ministers have counterattacked by stating that France never adopted a structured reform in the labour market. Italy was also charged with the same accusation of being too indulgent over reforms.   The discrepancies in the previous French government became more prevalent with Mr Montebourg reproaching President Hollande’s savoir-faire by taking a German approach to get France back on track. Nevertheless, President Hollande in the quest of not infuriating his German counterparts avoided commenting over this situation.   Are the ECB and France in accordance?   Despite the ECB’s efforts to boost economic growth, France is requesting for more flexibility in order to reach its target. It is to be noted that France has a pact with the Eurozone that it will reduce its deficit level. Perhaps the growing pressure over the ECB to loosen policies will help the French economy alongside the other slacking economies.   The authorities have introduced 40bn euros of tax cuts for companies who are encouraging hiring. The struggle against unemployment and slow growth has been a recurring issue under President Hollande’s reign. Currently, France’s unemployment level has surpassed 10%.   France plays a predominant role in the Eurozone but the continuous inconsistency in President Hollande’s government has baffled many. The recent reshuffle might probably give rise to a new dawn but until seeing concrete results, the ECB might be anticipating more cohesion from France’s side.     Source: bbc news
Priscilla Camryn By: Priscilla Camryn
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