Sapin's Comments Raise Controversy

On Sunday January 27^th, French Labor Minister Michel Sapin called the state “totally bankrupt” during a radio interview. After the comment caused controversy, Sapin later backtracked to state that he spoke of the state of the French economy, not the French government. Others in the French government – namely Finance Minister Pierre Moscovici – dismissed Sapin’s words as “inappropriate”. New president Francois Hollande has been taking steps to improve the state of the French economy. He plans on reducing government spending and raising tax rates. As Europe’s second largest economy – behind Germany – France is expected to fall further behind Germany, according to economists. This is expected to add tension to the relationship between the two countries. Unemployment rates are increasing in France and consumer spending is down.

I see France following the trend of several other European countries – Spain in particular. Like France, Spain’s unemployment rate is high and continues to grow and consumer spending has been decreasing. As Hollande was recently elected into office, I believe his plan to reduce spending and raise taxes should have a positive impact on the country’s economy, if enforced.  

http://www.ibtimes.com/france-defends-truly-solvent-economy-after-labor-minister-michel-sapin-says-country-totally-bankrupt

Zhang, Moran. "France Defends 'Truly Solvent' Economy After Labor Minister Michel Sapin Says Country 'Totally Bankrupt'" International Business Times. N.p., 30 Jan. 2013. Web. 31 Jan. 2013.