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30-06-2024, 03:20 PM
Matthew Lynn
Sat, 29 June 2024 at 1:02 am SGT
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As France prepares for its most significant election in at least a decade, with its leading parties committed to increasing the government’s already lavish spending, Christian Lindner, the German finance minister, has made one point clear: France is not going to get a bailout
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The RN wants to lower VAT on all energy products, reduce income tax for the under-30s and massively increase industrial subsidies. The Left wants to lower the retirement age – already one of the lowest in the developed world – and massively increase welfare benefits that are likewise very generous. To an even greater degree than the UK, France is an increasingly poor country that complacently assumes it is a rich one.
Where’s the money to come from? Not from Germany, as it turns out. Its finance minister Christian Lindner has made that clear.
......
In other words, Germany is not about to let the central bank start printing money to keep French bond yields under control. That is significant. Until now, investors have assumed that France’s debts, now the third largest in the world after Japan and the US, both far larger economies, were backed by the ECB and by implication the rest of the eurozone. If that is no longer the case the paper is virtually worthless.
MUCH MORE AT: https://sg.news.yahoo.com/germany-couldn...02225.html
Sat, 29 June 2024 at 1:02 am SGT
......
As France prepares for its most significant election in at least a decade, with its leading parties committed to increasing the government’s already lavish spending, Christian Lindner, the German finance minister, has made one point clear: France is not going to get a bailout
......
The RN wants to lower VAT on all energy products, reduce income tax for the under-30s and massively increase industrial subsidies. The Left wants to lower the retirement age – already one of the lowest in the developed world – and massively increase welfare benefits that are likewise very generous. To an even greater degree than the UK, France is an increasingly poor country that complacently assumes it is a rich one.
Where’s the money to come from? Not from Germany, as it turns out. Its finance minister Christian Lindner has made that clear.
......
In other words, Germany is not about to let the central bank start printing money to keep French bond yields under control. That is significant. Until now, investors have assumed that France’s debts, now the third largest in the world after Japan and the US, both far larger economies, were backed by the ECB and by implication the rest of the eurozone. If that is no longer the case the paper is virtually worthless.
MUCH MORE AT: https://sg.news.yahoo.com/germany-couldn...02225.html
