Posted On: 21st June 2012
Angela Merkel and Francois Holland are getting ready for a fight over their austerity/growth approaches. Mrs Merkel said last week “Europe must discuss the growing differences in economic strength between France and Germany”. She went on to openly criticise Mr Hollande for blocking EU supervision of national spending and supporting eurobonds which she warned would “mask” divergences between Germany and “mediocre” or declining Eurozone economies such as France.
Mrs Merkel said “If you look at the development of unit labour costs between Germany and France, differences have now been growing a lot more strongly, a topic that must be discussed.”
The tax and spend policies of Mr Hollande are likely to put the French credit rating under pressure.
“France needs its AAA or else the euro cannot bear the debt burden. Germany cannot do it alone” a Eurozone spokesperson said.
What a shame this can’t be settled by a football match!