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8/17/15

The Eurozone After Greece: Spain Vs. France - by Holger Schmieding

For some observers of the eurozone crisis, it is fashionable to make the argument that Spain’s recovery is not real and just rests on clay feet. In contrast, these same voices argue that France, which has so far steadily resisted reforms for the most part, does not have much to worry about.

While it is usually left unsaid, the great hope, under this approach to understanding the European economy, is that continued monetary action from the ECB will “bail out” Europe’s second-largest economy – and keep it from the need to undertake labor market reforms and other structural measures.

But what does the actual economic evidence show?

Bottom line: If Paris does not go beyond its recent mini reforms, it will soon fall behind Spain and most other euro members.

Read more: The Eurozone After Greece: Spain Vs. France - The Globalist

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