Whether you ask the IMF, OECD, the European Commission or the German government, they're unanimous that France must undertake economic reforms. Is it the next country in the euro zone teetering at the edge?
Rating agency Moody's was the latest to send out a warning. It revoked its top credit rating for France and lowered its forecast to "negative." But the financial markets remained unfazed. "First of all, many countries have lost their triple-A rating. Even the United States no longer has it, and can still refinance itself," said Jörg Krämer, chief economist at Commerzbank. In addition, he noted, the European Central Bank is there to do absolutely everything necessary to keep the euro zone together. "That explains why investors aren't worried," Krämer told Deutsche Welle.
Until now, France - like Germany - has been one of the winners in the euro-zone crisis, and can borrow money at historically low interest rates. Still, said Claire Demesmay, of the German Council on Foreign Relations, the Moody downgrade is a clear signal "that Francois Hollande has his back up against the wall and has no choice but to bring on reforms in the country."
Read more: France must face up to reforms | Europe | DW.DE | 27.11.2012
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