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Briefing

France: Fiscal Policy

Appears in: Europe, Macroeconomy, Eurozone, France, Fiscal Policy

Critical Issues

Background:

France has seen a series of weakening fundamentals in 2012, including a 13 year peak in unemployment as well as a 41 month manufacturing PMI low. With the proposed austerity measures of about €30bn in the 2013 budget, there is further contraction to be expected in 2013. The recent downgrade of soverign debt by Moody's (following the January downgrade by S&P) reflects the bleak outlook for the French economy. 

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