The French death rattle
The French government’s response to a report calling for reform reflects the country’s enduring interventionist mentality.
Moody’s announcement in November that it had downgraded France’s sovereign-credit rating by one notch from its AAA rating prompted one blogger to poke fun at rating agencies’ tendency either to get things completely wrong or to recognise suddenly a crisis that had long been staring them in the face. The blogger joked: “If this recognition by a rating agency that France has problems is an example of the first failing, a recovery must have begun; if it is an example of the second failing, the country faces a dire reckoning.”
French President François Hollande’s government claims to have awoken to the threat. In a recent interview, Finance Minister Pierre Moscovici likened the measures being undertaken to reduce the country’s debt burden and restore competitiveness to a “Copernican revolution…because these choices were not clear for a French government or for a centre-left government”.