France about to be the first issuer of government bonds in the euro area
This is a statement of the former minister of finances Thierry Breton. According to him, in 2013 France will exceed the amount of bonds emitted by Germany. The debt in the euro zone will become therefore mostly “latin”, with France, Italy, Spain and Portugal becoming the main debtor nations. They have, adds Thierry Breton, built their national (cheap) debt on the solidity of the German bonds but this era is coming to an end. Nowadays, the totality of the income tax revenues in France is going to the payment of the interest of the public debt.
Under the pressure of Brussels, Sarkozy is coming with the proposal to note into the Constitution a plan to return to the equilibrium of public finances.