Former French prime minister and possible candidate of the center-right party UMP for the 2017 presidential election, Francois Fillon, expressed his « concern » that France could be « on the verge of a serious financial accident that could destroy the eurozone. »
A few years after he affirmed that France was « bankrupt », provoking mixed reactions even in his own camp, Fillon told once again to the newspaper Les Echos that the solutions and remedies from the previous years will not rise to the challenge. « For now », he said, « the country holds its position only because the loan rates are low. »
It is true that the public deficit is widening faster than expected, crossing the symbolic threshold of EUR 2,000 billion. The increase in tax caused the opposite effect expected by the socialist president François Hollande, indeed tax revenues have declined and households now prefer to save rather than consume.
Hence, the saying « too much tax kills tax » made perfect sense, and it’s a whole country which finds himself caught in a vicious circle soon to be attacked by deflation, symptomatic of a Eurozone led by Germany which refused boosting economic growth through inflation and/or public spending.