I am astonished that we can’t keep things simple.
For a start, in LAW a state should NOT be permittted to borrow AT ALL.
Several states have finally recognized this, though they are at last at least proposing to allow borrowing up to a limit. The hilarious thing is that there was ALREADY an AGREEMENT to do this when the euro started, but THEY ALL IGNORED IT, including France and Germany, of whom only the latter can afford it.
ALL THOSE GUILTY OF BREAKING the 3% debt v GDP rule should be imprisoned under a new European law of “Reckless Misuse of Public Money”. Why the hell we haven’t had this law for decades is beyond me.
As for Hollande, the following seems true.
A) Only a moron (Gordon Brown, Zapatero, Chirac et al for a start) thinks you can without disaster eternally spend more than your income. France has not set a balanced budget for nearly four decades. For me, that makes Chirac a moron – and Lagarde come to that; great job SHE did as France’s Finance Minister, didn`t she?)
B) Hollande is simultaneously promising to balance the budget by 2015 AND spend billions more NOW to “create jobs”. He is doing EXACTLY what France has done for the last 40 years and which has led to this shambles – spending money NOW which he hasn’t got on the vague assumption that “growth” will pay for it one day ……
C) Either he is a moron OR he is wilfully lying.
D) He is probably not quite a moron in medical terms, so he MUST BE LYING.
E) Most likely the ONLY reason he could get elected was to LIE – otherwise he would have sounded much like Sarko with his austerity thinggy.
– The new leader is a liar.
– He lied because he knows the public are too stupid to recognize the truth.
Not exactly a great scenario, is it – a new Presidency beginning on a lie. How soon will all his promises turn to dust in yet another U-turn forced on him by the dreaded “markets”?
As for the meeting next week with Merkel,
A) Hollande is the irresistible force; he has PROMISED to renegotiate the fiscal pact. It is the BASIS of his election.
B) Merkel is the immovable object; she has ALREADY said the pact is not negotiable.
Even Houdini himself could not have got out of this one. I can’t want to see what sort of gobbledegook Eurofudgespeak comes out of their meeting