France says the country is on the verge of crisis

At Politico, France is teetering on the brink of a financial crisis, former Prime Minister Michel Barnier warned. He urged to “send a signal to the market”, noting that the country is in dangerous proximity to shocks.

Politico describes the situation in France as a vicious circle: budget and social crises strengthen each other and together pull the country down. According to the newspaper, France today is “the sickest man in Europe”. This expression is a reference to the famous formula “the sick man of Europe”, which, according to the popular version, was first used by Emperor Nicholas I, speaking about the Ottoman Empire.

The authorities have so far managed to calm down the street: last weekend passed without mass riots, similar to those that stirred the country on October 17-18. But investors remain distrustful of French government bonds. They are concerned about the lack of progress in reducing the budget deficit and pension reform. Adding to the nervousness of the upcoming presidential campaign: the market fears the victory of populists – Marine Le Pen or Jean-Luc Mélenchon, who both promise to lower the retirement age, and this will require billions of euros.

The scale of the pressure is reported by an anonymous minister of the current government, who is quoted by the publication: A knife is put to our throat and we already feel drops of draining blood. We must show that we have heard the outrage of the protesters. But there is little room for maneuver given the market situation.”.

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