France threatened with 'crushing' debt burden: PM

Frankly, I don't know how the socialists are going to pull this off. They apparently need to cut an additional 10 billion euros this year and 33 billion next year to meet the deficit targets promised by President Hollande. Meanwhile, Hollande has also promised massive new spending. I'll give you three guesses which side of the ledger the socialists will come down on. Wall Street Journal: French Prime Minister Jean-Marc Ayrault said Tuesday that France's debt burden has become crushing and is a challenge to the country's sovereignty. Mr. Ayrault was making his first speech to the French national assembly after a socialist majority was voted in following the election of Francois Hollande as president. "The weight of debt has becoming crushing," Mr. Ayrault said. French public debt has reached 1.789 billion euros ($2.257 billion), or nearly 90% of annual output. Mr. Ayrault's government has said it will stick to the target of bringing the French deficit down from 5.2% of gross...(Read Full Post)