Structural problems with the French economy, combined with weeks of violence and civil unrest as the government battles striking unions has elicited concern that the nation may fatally damage the European project.
Analysis including the so-called ‘Frexit Index’ — a rating of the chance of France crashing out of the Euro suggests British truculence and the migrant crisis are just the beginning of Europe’s worries.
German newspaper Die Welt reports that while “everybody is talking about the referendum on the United Kingdom’s membership of the European Union” many are ignoring other problems which threaten “the common goal of a powerful Europe”.
The chance of France leaving the Euro within twelve months trebled over the month of May, the latest figure available. The present inability of the French administration to deliver reforms and the ascendency of the Eurosceptic Front National are cited as key reasons for the increase.
#Frexit Index has tripled in May as investors see higher risk that #France, incapable doing reforms, will leave Euro pic.twitter.com/AsjPbJAXzV
— Holger Zschaepitz (@Schuldensuehner) June 1, 2016
The latest polls in France show Front National leader Marine le Pen to be the clear favourite for victory in next year’s presidential elections.
One of the major concerns about France’s relationship with the Euro is the inability of their govenrment to devalue their currency to help balance trade and to “nourish” the economy. According to the analysis of Die Welt, France needs to devalue their currency — impossible within the straitjacket of the Euro — and to restructure their labour market.
The socialist government is attempting to introduce legislation to end France’s traditional 35 hour working week.
It is these reforms which have triggered violent protests across France, leaving the nation’s railways paralysed, motorists suffering petrol shortages, and police under attack from rioters. Despite the disruption, some 46 per cent of French citizens polled still support the strike action.
The extremely negative reaction to Britain’s potential exit from the European Union in Brussels may be understood when the possibility of so-called Frexit, and the departure of other nations following the United Kingdom are considered.
As reported by Breitbart London today, the chief of Germany’s stock market admitted that if Britain leaves the EU, Germany may very well follow. Although Artur Fischer clearly did not relish the idea himself, he could not deny that once German people saw Britain enjoying their own Freedom they would want to do so themselves.
The so-called Eurosceptic contagion has also spread to the Czech Republic, as Prime Minister Bohuslav Sobotka said if Britain went, his nation probably would too.
Follow Oliver Lane on Twitter: Follow @Oliver_Lane or e-mail to: olane@breitbart.com
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