The French have voted out Sarkozy and voted in a socialist. The citizens of France didn't like the 'austerity' of Sarkozy. He had caused a wave of protests over his changing the retirement age from 60 to 62. Along with Angela Merkel of Germany, he had pressed for fiscal sanity within the European Union. Clearly, Europe is not keen on sanity. Even the economic powerhouses of France and Germany have more serious debt problems than we have in the US; these are the stable ones.
Whereas the US just broke the 100% mark in GDP to Debt, European nations are much worse:
- Italy 160%
- Germany 204%
- Greece 220%
- Spain 228%
- France 271%
- England 485%
- Ireland 1242%
These are dire numbers, all the more so because the US is, for the first time in more than half a century, not in a position to help. These countries have all embraced generous social programs and pensions that cannot be sustained. Austerity is required. But the citizens have become so accustomed to their government goodies that they view them as rights that must not be infringed. They have been weaned off of fiscal responsibility and taught to rely on government rather than themselves. So, collapse is the alternative that has been chosen.
Hollande, the socialist, proposes to raise taxes and restore spending. Amazingly, many wealthy French are looking to leave France. Capital can flee a country. Things will not get better. Europe is trying to ignore reality. Good luck.
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