If only we knew what European politicians really think of each other. Judging by the above picture, it looks as though Sarkozy and Merkel genuinely like other but things have changed since David Cameron vetoed the Eurozone treaty in Brussels. Chancellor Merkel has come out on the side of David Cameron and Nicolas Sarkozy is now the one looking vulnerable and isolated. British banks were spooked at the prospect of the French economy failing and pulled almost twenty billion pounds out of France between July and September this year.
There seems to be some angst about the credit ratings, France wants the UK’s downgraded. French Prime Minister Fillon said “Our British friends have a higher deficit and debt than us but it seems the ratings agencies have not yet noticed.” Ratings agency Standard & Poor has warned France that its AAA credit rating is at risk while Britain’s is ‘stable’. Yesterday another ratings agency Fitch is tipped to downgrade the ratings of Italy, Spain, Ireland, Belgium, Slovenia and Cyprus. Eurozone countries will have to get their total debt levels below 60 per cent of national income and limit annual budget deficits to 3 per cent of GDP.
Chancellor Merkel told David Cameron she doesn’t like Mr Sarkozy’s grandiose plans for new EU rules that undermine Britain’s interests so is she getting ready to desert the sinking ship of European debt? British banks also pulled billions out of Italy and Spain and invested in Germany and the US instead.
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