INTERVIEW - Frankreich wird zu einer Gefahr für die Finanzmärkte: «Es macht den Anschein, als habe die Regierung teilweise die Kontrolle über das Land verloren»
Der Ex-Nationalbankchef Thomas Jordan und der frühere US-Vizeminister Justin Muzinich warnen vor einer neuen Krise der Euro-Zone. Wachstum sei die einzige Chance, um einen Kollaps zu verhindern – sowohl in Europa wie in den USA. Doch dahinter steckt eine riskante Wette auf KI.
Frankreich faces grave risks to its financial markets, according to former Bundesbank chief Thomas Jordan and former US vice-minister Justin Muzinich. They warn that growth is the only way to prevent a collapse, both in Europe and the US, but the key lies in risk-taking on artificial intelligence (AI). When seeing images of burning town halls, Muzinich expresses deep regret, stating that societal discontent arises when lack of growth robs people of prospects.
To revive productivity growth, both Europe and France must urgently implement investment-promoting reforms, as Mario Draghi emphasized in his report. These reforms should resemble the 2017 American tax reform, which benefited the lower-income groups significantly. A healthier society reduces inequality from bottom to top through increased productivity and wage gains, rather than from top to bottom through transfer payments.
Jordan asserts that the current situation in France is dramatic, suggesting that the government appears to have lost control over the country. A very high debt-to-GDP ratio and a massive budget deficit characterize the country. Drastic fiscal corrections are necessary but impeded by the lack of majority support in Parliament and upcoming elections.
While it's too early to say that a new Euro crisis has begun, it's crucial that France rapidly consolidates its public finances to prevent contagion effects on other countries.
Written by urgent.news from NZZ Wirtschaft's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
