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Europe's next banana skin
So the French President reckons France is on the verge of an economic recovery. Neil Staines, Head of Trading at the ECU Group, isn't convinced. He says that France is about to slip on a very large banana skin. The French economy, the Eurozone's second biggest, is still in recession, unemployment is at a 14-year high and Fitch has just downgraded it from its AAA credit rating. In fact, France hasn’t had a balanced budget since 1974.
But it’s even worst for President Francois Hollande, whose popularity is currently at an all-time low. Why? His tax hikes and spending cuts, according to Staines. He argues the last thing France needs right now is more tax rises. And he's very concerned about contagion, that France's problems could spill over into the the rest of the Eurozone provoking a fresh crisis.
01:11 minutes
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