The latest economic data from France look bad. The strategy of keeping official growth forecasts high (despite the evidence) is coming under increasing pressure and there may be substantial revisions to the outlook in the pipeline – once you break through to being more honest, there is some catching up to do.
Even more worrying are the plans apparently under preparation to support the French auto industry. Officially, these plans are still under development (AP). But from what we can see, including unofficially this week, the next phase of assistance could well be even more problematic than the support provided to the US auto industry which, so far, only got a bridge loan. Continue reading “French Car Wreck”