France: growth trap
Article Abstract:
The French economy could be hit by a growth trap according to Lehman Brothers. Slow growth will affect the government's ability to reduce its budget deficit since government revenue will be reduced. Economic growth and control of government spending are the key factors affecting whether France achieves its target of a budget deficit of 3%. A deficit of 3.75% is more achievable and this may allow monetary union to proceed. Protests are likely over cuts in public sector jobs and subsidies.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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France: talking points
Article Abstract:
The French economy is not attracting foreign investors, according to Julian Jessop from Nikko Europe. The French economy is the second biggest in Europe and its performance will affect planned European monetary union (EMU). Consumer and business confidence is low, and high unemployment means that social unrest is a risk. Tight fiscal policy affects business confidence but a weak economy means that the budget deficit is likely to increase. This in turn threatens EMU.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Comment about this article or add new information about this topic:
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