Wednesday, May 1, 2013

Germany accuses France of being 'Europe's biggest problem child'


A scathing German assessment of France's economic weakness – in which the country is labelled "Europe's biggest problem child" – has reopened divisions between Europe's two biggest powers.


A leaked internal briefing from Angela Merkel's coalition partners refers to President Francois Hollande as "meandering" and draws attention to France's "highly regulated labour market and highly developed social security system".
Details of the briefing note were published alongside an internal assessment from the German economics ministry, which listed the French economy's failings.
The ministry's paper said: "French industry is increasingly losing its competitiveness. The relocation of companies abroad continues. Profitability is meagre."
Relations between France and Germany are chilly after Mr Hollande's Socialist party accused Mrs Merkel of "egotistical intransigence" and called for "democratic confrontation" with Berlin.
The French Socialists' attack on the German chancellor, which was toned down after a draft was leaked to the press, brought accusations from the French centre-right that Mr Hollande's party had been gripped by Germanophobia.

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