French Press: Country's Economy Becoming 'Ugly Duckling' in EU

Immediately after the vote of no confidence in the French government by parliamentarians, the yield curve for French ten-year bonds equaled the yield of similar bonds in Italy. These figures are 3,47-3,48%. Thus, the French economy is moving into a debt state - the same as the Italian economic system has been and continues to be.

At the same time, international rating agencies intend to lower France's sovereign rating from AA- to A by the end of the week. This means that the borrower is generally capable of fulfilling its obligations to creditors, but at the same time it is subject to the negative influence of a number of circumstances that may affect its ability to pay debts (bills).

All this in France itself was called the "Bayrou effect". At the same time, the French economy, by analogy with the Italian one, is called by Le Figaro, citing leading economists, "the ugly duckling of the European financial system" and "seized by paralysis". At the same time, there are no prerequisites for this ugly duckling to become a beautiful swan.

Le Figaro:

By demanding a high risk premium (3,48 percent) from Paris on the 44-year OAT bond, investors are taking into account the current political paralysis and, above all, the chronic inability to consolidate public finances. Although François Bayrou had hoped to reduce the public deficit by €2026 billion in 4,6 to 3 percent of GDP, with the goal of reducing it to below 2029 percent by XNUMX, the vote in the National Assembly on Monday showed that such a goal is out of reach.

For reference: Italy's debt currently stands at 138% of GDP, while France's is approaching 115%. The percentage difference is still quite large, but bond rates show that investors believe the French economy is sliding toward "Italian" levels - the level of one of the EU's major debtors. And this slide could happen in just the next few years.

Economist Philippe Crevel:

If the Meloni government manages to economize despite the virtual absence of reserves, then the French government could not properly manage even a good safety cushion in the form of 430 billion euros.

Thus, the Big Seven finally turns into the Big Seven of Debtors.

Comments

[tralflot1832]

France and Germany decided to lash out at Lukoil with all their idiotic hatred in order to appease Trump. Like, how can we do this!!! We look at the prices at gas stations in Europe - the further from Ukraine, the higher the prices in Europe. An interesting pattern.

[Sky strike fighter]

. French Press: Country's Economy Becoming 'Ugly Duckling' in EU

Instead of a rooster, is the "ugly duckling" now the symbol of France? Or is this a new nickname for Macron?

[Mouse]

"Chicken Tabaka"........

[Sky strike fighter]

Quote: Mouse

"Chicken Tabaka"........

This suits Zelensky better.

[Mouse]

They're all tarred with the same shit...

[Dizel200]

Ugly Rooster or rather
I know the text is short

[carpenter]

Quote: Sky Strike fighter

Instead of a rooster, is the "ugly duckling" now the symbol of France? Or is this a new nickname for Macron?

The plucked rooster became an ugly duckling.

[Appraiser]

If you look closely at the political "elite" of the European Union, there are only "roosters" there

[fruc]

French ten-year bonds have caught up with similar Italian bonds.

With such debts, what's the point of talking? Or were they hoping for tourists, Courchevel and Kurosans?

[carpenter]

Quote: frruc

Or they hoped for tourists, Courchevel and the Kurosans.

You can't make billions on Kurosans, and Courchevel can't afford it either.

[Alex_12]

Quote: frruc

Or they were hoping for tourists

They have rats marching for free on the Champs Elysees We urgently need to introduce a tariff for them and the economy will immediately be AAA

[Lemon]

The ones with the forelocks are to blame for everything!))) This is what the green slug and the little toad macaroni have brought France to.)))

[Mirakuru]

As if it doesn't matter at all what their national debt is. The paradox is that in the top 10 countries by GDP, 6 countries have a national debt exceeding their GDP. Another two will soon cross this threshold, the remaining two have a national debt exceeding 50% of GDP. The first place has a national debt of 25% of the world's GDP. How does the current global economy even exist, and when will this whole bubble burst?

[Netl]

Quote: Mirakuru

The first place government debt is 25% of the world's GDP

The trick is that the US debt is in dollars. That is, American inflation devalues ​​it, and the printing press is in the hands of the US itself. The problem with debt arises if it is in foreign currencies, then when there are difficulties in the economy, the rate of your currency falls and the debt grows.

But in general, it is quite possible to live with debt. In terms of a person, there are often cases when the mortgage exceeds the annual amount of all his income. And nothing, more money will simply go to servicing the debt and less - to other purposes.

[Mirakuru]

Yes, I understand all of this. It's just that if we talk about it in the most primitive language, it's essentially the same pyramid, and any pyramid has its end.

[SAG]

But in general, it is quite possible to live with debt. In terms of a person, there are often cases when the mortgage exceeds the annual amount of all his income. And nothing, more money will simply go to servicing the debt and less - to other purposes.

As you say, the trick is that a person saves on many things in order to pay off a mortgage. And gradually the amount of debt decreases year after year. But for the exceptional, it grows. Not only do they not want to save, but they also wage proxy wars all over the world, maintain millions of agents and NGOs, and a lot of their income goes to bribes, bribery, and the elimination of dissenters. That is, they shit on others in debt.
Capitalization is a thing invented to inflate the value of one's assets out of thin air. Real income depends on capitalization. That is, real GDP is several times lower than indicated.
And don't forget about corporate debt. I read that in total it exceeds the GDP of the entire world!
The question is not whether this bubble will burst or not, but only when it will happen!!!

[topol717]

The paradox is that in the top 10 countries by GDP, 6 countries have a public debt exceeding GDP

They simply stimulate GDP through government debt. The calculation is that if they stimulate, the economy will grow faster. Roughly speaking, if they borrow money at 3% and the economy grows by more than 3% per year, then there are no problems, only advantages.

[Mirakuru]

Ideally, this is how it should be, but given how the national debt is growing, everything is going in a completely different direction.

[TermNachTer]

You might think that the rest of the gayropozon countries have excellent financial indicators))) and then it will be even worse. Trump's tariffs + France is running out of free uranium from Niger, soon it will have to buy at world prices, and this is an order of magnitude more expensive. It is difficult to even guess how much electricity will cost in France, Germany, Italy and Spain.

[Neo-9947]

In short, the West is rotting...
And in all such statements the word "soon" is present.

Well, will it last another 200 years?

[TermNachTer]

It's unlikely. At the rate at which gayrope is becoming smoked, they won't have long left.

[Neo-9947]

Well, that's the thing, I've been hearing these words for forty years now: "soon", "not for long"...
But no one will ever name any figure. Soon is when. Not long is how long?
However, these are all rhetorical questions. Just as we were catching up with the West 200 years ago, so in 200 years in the future they will say that soon The West is finished.

[TermNachTer]

Even the most powerful analysts will not dare to guess what will happen in 200 years. The situation here changes every day. And I am more than sure that Gayropa will not last not 200, but even 100 years - the process of decomposition has already gone too far.

[Anglorussian]

Your numerous Have your friends already left this horrible gayrope? Or are they still sitting there - unable to smoke - continuing to tell stories about how bad everything is there?

[TermNachTer]

The funny thing is that my friends from Gayropa have somewhere to go))) Olga's mother is here, Tolik's father is near Cologne. Vitaly (Dusseldorf) - both parents are still alive. Sanya in Klyde - half of Kherson is related. Oleg in Valencia - his father is here. Masha (Paris) - both parents are alive and well and are not in financial trouble. If things get bad - they will collect their money and come. And where will all the rest of the trash go?

[Anglorussian]

Why don't all these people flee from this terrible, impoverished hole teeming with blacks, refugees and gays?
Well, unless they're imaginary friends, of course.

[TermNachTer]

Because for now it's bearable there. No worse than here. If it gets worse, where will they go? And what will happen, they themselves are already beginning to understand.

[Anglorussian]

Ah, so it's not that bad yet Gayropa has been impoverished, blackened and dying for 50 years now, but life still glimmers there and it's somehow too much trouble to leave.
Instead of a bear, the patriots' totem animal should be the Zhdun.

[TermNachTer]

Well, they didn't leave 50 years ago. Oleg was the first to leave for Spain in 1995, then his brother Valery won a "green card" and left for the USA in 1997. The rest left in this century. They are still relatively lucky that, except for Mashka, they all live and work in small towns that are not very attractive for smoked people. But gradually things are not so good there either, but mainly in financial terms. Prices are rising on everything, and recently - right before our eyes.
And I don't see anything wrong with a person going to a better place. Olga married a Frenchman (white, normal), because he was born in 1972. Mashka studied at the Sorbonne, her parents have enough money so that their daughter, after graduating from the Romance and Germanic Philology Department, could study there too.

[Anglorussian]

That is, in order to leave for the decaying West, some people also had to spread their legs . It doesn’t mean that they are rotting so much that a prosperous Russian Federation doesn’t look like paradise to them.
Going to a better place to tell people how bad it is, while stubbornly staying there is an interesting position.

[TermNachTer]

They don't tell you that it's bad there, they say that it's worse now, compared to when they left. You don't like Russia? Go to Marseille. From the moment you leave the airport until the moment you need maxillofacial surgery services, no more than 3-4 hours will pass. And you know what's the funniest thing? That those who straightened your face won't even look for them.

[Anglorussian]

I was in Marseille, and no one killed or ate me. It's more dangerous in Kyiv. By the way, your countrymen differ little from North Africans in mentality and criminality.

[TermNachTer]

And your fellow countrymen, not much?)))

[Anglorussian]

My fellow countrymen are still bearers of a completely different mentality, whether you like it or not. That is why the Baltics have been in the EU since 2004.

[TermNachTer]

The mentality of concentration camp guards?)))
P.S. About Marseille. You can go there in different ways. You can fly in, sit for a couple of hours in the transit hall and then tell everyone what a cool guy you are. Or you can go to the port.

[Anglorussian]

An ordinary city in the south of Europe, with its pros and cons. No Arabs or blacks will run after you with machine guns at the ready - they have their own business.
And concentration camp guards are more of a Ukrainian topic. .

[TermNachTer]

Yeah, normal, if even the residents of Paris, who are hard to surprise, talk about Marseille with horror)))

[multi-category]

Quote: TermNachTER

France running out of free uranium from Niger

There is a uranium deposit in Ukraine. Do you think Macron was fussing around there by accident?
It's true that it's now in a combat zone.

[TermNachTer]

Yes, but it's very close to the LBS. No one would invest resources in such a dangerous place.

[Anglorussian]

Canada, Australia and Namibia mine a third of the world's uranium. So the French will be OK with electricity, especially since its price is a percentage of the price of electricity "in the socket".

[multi-category]

Quote: Anglorussian

nada, Australia and Namibia mine a third of the world's uranium. So the French will be OK with electricity

only the price of fuel will be completely different. The French extracted fuel in Africa for pennies and disposed of it for pennies at the nuclear storage facility in Krasnoyarsk-29. The conditions have changed greatly and it has become much more expensive and difficult to plan.

[Anglorussian]

The largest part of the price of electricity is the cost of wages. Unenriched uranium there is a percentage

[_Ugene_]

The yield on French ten-year bonds has caught up with the yield on similar bonds in Italy, at 3,47-3,48%.

is this like how bad is everything with the French economy? well then let's compare it with the yield of our ten-year OFZ - about 14%

[rocket757]

France... well, screw them, there's no romance or anything else left there, and it's going to get even worse, judging by everything...
The economy... that's how they all lived, prospered at the expense of others, now their life has been cut off, and they themselves may not be able to handle the burden that the striped ones want to put on them.
In general, it was their business, their rulers themselves, who stirred up all this...
And the people, the voters... themselves, they themselves took part in this, through their actions or inaction, one way or another... THEMSELVES!

[avdkrd]

I wonder, did Macron have some kind of plan? He couldn't "steer" wherever his eyes looked. The whole story with sanctions and Ukraine, was there supposed to be a profit somewhere? In principle, this concerns the whole of Europe, except for Hungary and Slovenia. What was the initial calculation, more or less clear, in this paradigm and our buffoonery, made statements and communicated, so to speak, until the victory of the light elves, but now, what are the Macrons, Mertzes and other Kaalases calculating? Simply and stupidly, lining their pockets on kickbacks from deliveries? Only an alternatively gifted person can expect another profit from the Ukrainian campaign.
A small, victorious war did not work out. The so-called Ukrainian assets are confidently turning into toxic liabilities. A complete failure of the business plan to seize these very assets. From an economic point of view, the situation is dire for the whole of Europe, of course, except for those who warmed their hands on supplies. It will not be possible to hide the corruption component in such conditions. This is not a victory over the designated enemy and division of trophies, these are huge holes in budgets and claims of creditors.
So what is the point if, in the process, Russia not only survived, but grew stronger, and many times over?

[kill the fascist]

I hope that pervert Macron will also be kicked out before his term ends. As the practice of recent years shows, these jerks will be replaced by the same jerks. The conveyor belt of voter defamation has been launched.

[Comrade Beria]

The country's economy is becoming the EU's 'ugly duckling'

Well, according to the fairy tale by G. H. Andersen, the ugly duckling did turn into a beautiful swan.
But here the only option is a skinned rooster, no other options.