France warns on credit rating(Keeping AAA would be a stretch)

Reuters ^ | 05/30/10 | David Stamp

[TigerLikesRooster]

France warns on credit rating

David Stamp

LONDON

Sun May 30, 2010 12:08pm EDT

LONDON (Reuters) - France admitted on Sunday that keeping its top-notch credit rating would be "a stretch" without some tough budget decisions, following German hints that Berlin may resort to raising taxes to help bring down its deficit.

Euro zone trade unions are preparing for possible confrontations in the coming week if governments impose austerity measures or labor reforms unilaterally.

But ministers made clear they were ready to take unpopular steps to prevent the Greek debt crisis spreading to their economies, although doubts are growing about whether the Spanish government in particular has enough support to get its way.

Budget Minister Francois Baroin indicated on Sunday that France should not take for granted its AAA rating, which allows Paris to borrow relatively cheaply on international markets and finance its big budget deficit.

"The objective of keeping the AAA rating is an objective that is a stretch, and it is an objective that, in fact, partly informs the economic policies we want to have," Baroin said.

[TigerLikesRooster]

P!

[Oceander]

Here we go; events are beginning to snowball into an economic avalanche. Gotta love socialists and liberals.

[Army Air Corps]

Ping.

[Army Air Corps]

...following German hints that Berlin may resort to raising taxes to help bring down its deficit.

Of ocurse, no one thought about reductions in spending.

[TigerLikesRooster]

Hey, those ‘sophisticated’ Berliners know better than ‘good-for-nothing’ Americans. Their infinite wisdom will find magic solution. All you have to do is to worship and then follow their ‘superior’ policy. /sarc

[rdl6989]

The “Greek fire” or “Greece fire” is spreading.

[Oceander]

Yes it is, yes it is.

[SAJ]

As they say, m'FRiend, shjt flows downhill.

The only questions remaining are: 1) who's next, and next, and next? (my bet: Portugal, Spain, Latvia), and 2) what time frame?

France may take a ratings hit from the feckless (and increasingly untrustworthy) ratings agencies, but they're well down the list if/when it comes to threatening default. Italy are in front of them, as are a couple of the E. European members, and probably Belgium, too.

Side note: Belgium is a dog's dinner politically, socially, ethnically and financially. It's a supreme irony that the Eurocrats run things out of Brussels. Even Mencken likely couldn't have dreamt up that one!

[GOPJ]

Thanks for the ping.