As you know, the French President elect, Francois Hollande, has declared that France is going for growth! He has started the way he means to go on by lowering the retirement age, and soon he will be introducing punitive taxation on those who create wealth. Sounds like a plan, right?
The French central bank cut its second-quarter growth estimate for the eurozone’s second biggest economy, and now expects it to contract by 0.1pc. It had previously expected growth to be essentially unchanged in the three months from April through June. If the figures are confirmed it would be the first contraction since France pulled out of recession in 2009.
I am sure people will look back at -0.1% as the golden age, once the implications of Francois’s programme rips through the economy in la belle France! It doesn’t matter how often you say it but the central truth remains – you cannot spend what you do not have.