French politics: And they’re off | The Economist

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This is an interesting article. Check it out!

French politics: And they’re off | The Economist.

It will be interesting to see how French voters feel about their politicians.

For sure, Sarkozy has not delivered the reforms that he promised in the last election – he also seems bitterly unpopular with French voters.

As the Economist article points out, France has major problems with its bloated Public Sector but all the candidates seem to be ducking the issue, preferring to focus on tax increases rather than Public Sector cuts.

France is similar to Japan in some respects – both have some industries that are the envy of the World – on the other hand, they also have a number of bloated, protected and inefficient sectors, especially the Public Sector.

It’s hard to see that the financial markets will be very forgiving to a Socialist Prime Minister.

France has a long history of strikes and public protest – for sure we shall probably see the French people in the streets whoever wins.

Irrespective of which candidate wins the Presidential election, French citizens need to brace themselves for serious pain, as austerity bites. Political distractions, like Tobin taxes will not be enough, in my view.

As a final thought, the next French President may well have to brace him or her self for the following question:

Why should the rest of Europe still have to pay for inefficient French farming, by way of CAP (Common Agricultural Policy)?

Cameron tells Davos: Germany must be bold over eurozone crisis | Politics | The Guardian

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This is worth a read. Check it out!

Cameron tells Davos: Germany must be bold over eurozone crisis | Politics | The Guardian.

Prime Minister David Cameron, at Davos, challenged Germany to do more for the EU, and again criticised the Tobin Tax on financial transactions. He cited the UK austerity record, which this week has suffered increasing criticism as the UK returned to recession.

Earlier in the week, the World Bank joined the IMF and many World famous economists calling upon Germany to take more action but Chancellor Angela Merkel’s speech at Davos showed that she was not for budging, at the moment.