After the German-French council of ministers in Paris, Chancellor Angela Merkel and President Nicolas Sarkozy gave a joint TV interview at the Elysée Palace, the official residence of the French president. Merkel berated François Hollande, Sarkozy’s top challenger in the upcoming presidential election. Then Sarkozy lashed out against him. Never before had a German chancellor campaigned so hard for a French president.
Europe – France
Friday Night Economic Indices
by Wolf Richter • • Comments Off on Friday Night Economic Indices
There still are some economic numbers that aren’t seasonally adjusted or manipulated with fancy statistical footwork by governmental, quasi-governmental, or non-governmental number mongers. And they give us the true picture of the worldwide economy: beer, wine, mood, and San Francisco real estate—with more predictive power than is allowed by law.
French CEO About Ratings Agencies: ‘We Have To Shoot All These Guys’
by Wolf Richter • • Comments Off on French CEO About Ratings Agencies: ‘We Have To Shoot All These Guys’
“We’re experiencing the beginning of the repercussions of the financial crisis,” said Michel-Edouard Leclerc, CEO of the second largest retailer in France. He has never seen so much “rational behavior among consumers” and so much “fear of getting screwed.” Until now, the crisis has touched mostly the financial world, but in 2012, it will hit the real economy. “It’s always the people who end up paying,” he said.
CEO of Dexia: ‘Not A Bank But A Hedge Fund’
by Wolf Richter • • Comments Off on CEO of Dexia: ‘Not A Bank But A Hedge Fund’
The Previously Unthinkable Becomes A Planned Event
by Wolf Richter • • Comments Off on The Previously Unthinkable Becomes A Planned Event
Governments and companies around the world have been preparing for a collapse of the Eurozone—simple prudence requires them to do that. Theoretical exercises for a hypothetical scenario, they call it. But recently, these theoretical exercises have taken on practical overtones. And even the public is now encouraged to prepare for the demise of the euro.
Political Realities Threaten To Split The Eurozone
by Wolf Richter • • Comments Off on Political Realities Threaten To Split The Eurozone
Sarkozy will be the only French president since World War II with two recessions under his belt, if current forecasts are correct. Recessions are rare in France: between the war and the financial crisis, there were two. Against this backdrop, Sarkozy faces a tough reelection campaign. And front runner François Hollande has vowed to oppose the German dictate on how to save the Eurozone. So it might all unravel.
Merde! Chinese Wines Did What to French Wines?
by Wolf Richter • • Comments Off on Merde! Chinese Wines Did What to French Wines?
In France, the litany of job reductions continues. Today, it was Air France. It followed automaker PSA Peugeot Citroën, French banks, nuclear-power conglomerate Areva, drug maker Sanofi, newspapers, ferry operator Seafrance, etc. It’s tough out there. And now, France’s heavily subsidized signature industry—wines—got slapped in the face. By China.
Germany’s Last-Ditch Compromise, At A Price
by Wolf Richter • • Comments Off on Germany’s Last-Ditch Compromise, At A Price
“I’m very happy with the result,” Merkel told the cameras. But the agreement may be illegal under EU law and may devastate weaker economies. It elevated Germany to a leadership role that other countries perceive as domineering. By isolating the UK, it cut a deep gash into the EU. And it can’t be put into a treaty. But it did offer a compromise of sorts.
Sarkozy: “The Risk That Europe Will Explode”
by Wolf Richter • • 3 Comments
The Swiss government is preparing for a collapse of the euro while 27 heads of state convene for another EU summit in Brussels to find that elusive solution to the debt crisis. Goal: treaty changes that would impose Germany’s new religion of budgetary discipline on all 27 member states. But opposition has cropped up, and timing turns out to be impossible.
Germany at Its Rubicon
by Wolf Richter • • Comments Off on Germany at Its Rubicon
No country is economically more dependent on the survival of the euro than Germany: the export powerhouse thrived because Eurozone countries could borrow unlimited amounts of euros to buy German goods. But now that the gravy train has stopped in front of a mountain of unmanageable sovereign debt, Germany finds itself at war—with itself.