FX.co ★ French government dissolved

The French government has been feeble. It is a fact proven by the recent Francois Hollande’s decision to purge his government. What stirred him into this step were harsh attacks on his tough austerity. According to the opposition, the national economy is unable to expand. By the way, the data released recently showed that the French manufacturing sector is stagnating for the fourth month in a row. French Prime Minister Manuel Valls presented the government resignation to President Francois Hollande. The latter, being strictly criticized, accepted it and called for a new cabinet that is to be formed on the principle of unanimous support for the party’s policy in line with the direction the president has defined for the country. The key Hollande’s detractor is current French finance minister who is explicitly unsatisfied with the present economic policy, particularly, meek acceptance of austerity principles dictated by Germany. He thinks such an approach has a detrimental effect on the economic growth. It should be reminded that the spending cuts were enforced in 2008 as an obligatory measure amid the global crisis. Even though its aftermath is still there, some politicians believe it is time to do away with tough saving. "France is the eurozone's second-biggest economy, the world's fifth-greatest power, and it does not intend to align itself, ladies and gentlemen, with the excessive obsessions of Germany's conservatives," the economic minister said, stressing the urgent need to rescue the EU and find a “moderate and balanced” alternative. If there are no changes, voters will support populists or even extreme parties.