Fortunately, there is an election in France shortly, so that the choice will be left to French voters, unlike Greece and Italy which now have bureaucrats at the helm sponsored by Germany, the EU and the IMF, rather than their democratic processes.
French politicians have consistently been deflecting attention to other troubled countries to try to take focus from France. Greece, Italy, Spain and the UK have all received French attention.
The French downgrade will be a serious blow to the egos of the French political classes. The fact that the heavily indebted UK escaped downgrade will add salt to the wounds. It will be interesting to see how UK Prime Minister, David Cameron, plays his “Triple AAA hand” with Germany and France in the coming days.
France will now need to get serious about its own austerity measures, in particular, it will need to savage its bloated Public Sector. Whoever wins the French presidency, he will have the credit rating agencies on his back and this could well lead to civil unrest and unprecedented strike action in France.
The following article from the Guardian puts this story into wider context. Check it out!
- Nicolas Sarkozy’s worst election fear realised with loss of AAA rating (guardian.co.uk)
- S&P’s French rating bombshell could have been more severe (telegraph.co.uk)
- Carla Bruni-Sarkozy indicates Nicolas Sarkozy will seek presidential re-election (telegraph.co.uk)
- Euro plunges on France rating fears (guardian.co.uk)
- Turmoil as France loses AAA rating (thesun.co.uk)
- France to say ‘au revoir’ to perfect financial rating (rt.com)
- Here Are The First Official Responses By French Politicians To S&P Downgrade (zerohedge.com)
- Turmoil as France loses AAA rating (nla.thesun.co.uk)
- Turmoil as France loses AAA rating – The Sun (thesun.co.uk)
- France is stripped of AAA credit rating by Standard & Poor’s (telegraph.co.uk)