Menu
Finance
Cutting These 10 Everyday Expenses in 2014 Will Save You $8,844
How to Perfectly Plan Your Divorce to Protect Your Assets
PNC Bank Review – Overview of PNC Bank Accounts, Loans and More
Here’s Why Bank of America Just Closed Your Credit Card Without Telling You
2014 Academy Award Statue Valued at Just Under $400
Why You Could Start Seeing Your Credit Score on Your Credit Card Bills
How to Host Your Academy Awards Viewing Party on a Budget
Warren Buffett Reveals His No. 1 Investment Strategy That Anyone Can Follow
Your ATM’s OS is a Decade Old: Here’s Why Banks Are Scrambling to Update It
What You Need to Know About Obama’s $3.9 Trillion 2015 Budget
Discover What a Discover Bank Online Savings Account Can Do For You
4 Tips to Cut Your Monthly Bank Fees
Here’s Why One Analyst Says Bank Stocks Are Going to Double
How Ben Bernanke Earned $250,000 in 40 Minutes
Visa and MasterCard Join Forces to Protect Your Card from Hackers
French failure to reform threatens euro, warns Brussels
France, the eurozone's second biggest economy, has been singled out for harsh criticism by the European Commission with a warning that low French competitiveness and high debt threaten the EU's single currency.

The European Commission on Wednesday published a report on "macroeconomic imbalances" on 13 EU countries, including Britain, singling out Spain and Slovenia for warnings over "excessive" failings.

Both countries faces EU sanctions including massive fines - unless they step up structural economic reforms and take additional measures to cut debt by the end of May.

"In two member states, Spain and Slovenia, imbalances can be considered excessive," said Olli Rehn, the EU's commissioner for economic and monetary affairs.

"In Spain, the very high domestic and external debt levels continue to pose serious risks for growth and financial stability. In Slovenia, the risks for financial sector stability are substantial, including through inter-linkages with public finances."

The commission used unprecedentedly strong language to criticise France in a stinging assessment that covered Francois Hollande's first year as French President.

In a bleak analysis of the French Socialist president's performance, the EU's executive warned that France's diminishing growth prospects are toxically combined with soaring sovereign debt levels, expected to rise to 93.8 per cent of economic output next year.

"France's public sector indebtedness represents a vulnerability, not only for the country itself, but also for the euro area as a whole," the commission report said.

"The resilience of the country to external shocks is diminishing and its medium-term growth prospects are increasingly hampered by longstanding imbalances."

While noting President Hollande's attempts to make reforms, the Brussels report signalled that France could be threatened with sanctions because measures to restore competitiveness are currently inadequate.

"While these reforms are steps in the right direction, they will not be sufficient to solve the competitiveness issues and, in view of the challenges ahead, further policy response will be needed," the report said.

Indicating growing concern over France, rather than so-called eurozone "periphery" countries such as Spain, Mr Rehn emphasised that the EUa426;s single currency could be threatened by the lack of progress.

"France is a core country - in terms of its size and its geo-economic position," he said. "Its health has a very direct impact on the overall health of the eurozone."

The commission report also highlighted flagging competitiveness in Britain, with a continuing credit crunch jeopardising growth and Government atampts to cut public debt.

"High and increasing level of government debt remains a concern and, although the government deficit is still forecast to fall gradually, progress on fiscal consolidation has slowed in a context of weak economic growth," said the report.

"Continuing balance sheet repair in the financial sector, which is among the most highly leveraged in the EU, means that bank liabilities are not expected to expand rapidly, although the scarcity of credit is in turn holding back economic growth and hence progress on fiscal consolidation."

Menu
Hey Ladies: Don’t Miss Out on the Broke Boyfriend Tax Exemption
3 Ways to Fix Your Finances in One Hour for Daylight Saving Time
IRS Reports This Year’s Average Tax Refund is $3,034
How to Start Saving Money for Your Baby’s College Education
How to Find Free Tax Preparation in Your City
IRS Wants to Pay You $25,000 for Saving Your Tax Return
5 Secrets Your Bank Doesn’t Want You to Know
How to Handle the 5 Most Awkward Money Situations
4 Tips to Cut Your Monthly Phone and Cable Bills
Stop Wasting Money Because You Won’t Admit You’re Old
Amazon Prime Price Hike: Is It Worth It?
10 Tips for Winning Your March Madness Bracket and Some Extra Cash
I Lost My W-2! What Should I Do?
4 Cheap, Fun Ways to Celebrate St. Patrick’s Day
What Four Leaf Clovers and Interest Rates Today Have in Common
Name
Name

Password