Posted on 05/15/2012 12:39:45 AM PDT by bruinbirdman
The French economy did not grow at all in first three months of 2012 and the previous quarter's growth was cut, in a blow to new president Francois Hollande.
Official figures released on Tuesday showed that French GDP growth was 0pc in the three months through March . Growth in the last quarter of 2011 was revised to 0.1pc from 0.2pc.
Official statistics agency INSEE said the economy grew by 1.7pc overall in 2011.
Inflation rose 0.1pc on a monthly basis after a jump of 0.8pc in March. Year-on-year inflation dipped to 2.1pc, back to the level seen in mid-2011.
The growth figures will weigh on new president Francois Hollande, who will be sworn in later today after defeating Nicolas Sarkozy at the polls last week.
Within hours of the inauguration ceremony at the Elysee Palace, Mr Hollande will fly to Germany for crucial eurozone talks with Chancellor Angela Merkel.
Mr Hollande has criticised German-led focus on austerity as a way out of the European economic crisis.
"We don't think the same on everything," he acknowledged on French television on Monday. "We'll tell each other that so that together we can reach good compromises."
Top of Tuesday's agenda is likely to be failure of Greece to form a coalition government, which has raised serious questions about the debt-stricken country's ability to stay in the single currency.
Spain is also a hot topic as it tries to fend of a crisis in its banks.
Mr Hollande has vowed to confront a crisis in the public finances with a combination of a heavier tax burden and lower public spending, targeting returning to balanced budget by the end of his five-year term in office.
It is a tall order for a country swamped by an annual budget deficit of €100bn
(Excerpt) Read more at telegraph.co.uk ...
Already laying the groundwork for “I inherited this bad economy”? Merkel better bring her cajones to the table, she is about to be isolated.. while footing the bill for the defunct Euro.
Already laying the groundwork for “I inherited this bad economy”? Merkel better bring her cajones to the table, she is about to be isolated.. while footing the bill for the defunct Euro.
I bet my last nickel that the economy will not get any better either. Many times I wonder what causes the derailment of the human brain by socialism, some one always attempts to come up with a different flavor but it never works.
Germany will be the first to exit the Euro.
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