The government is re-working its budget-deficit targets after the economy revealed no growth over the first and second quarters. Additionally, recent economic data revealed that the French manufacturing confidence declined to its lowest in 13 months in August. [Stagnate Growth Has Europe ETFs Lagging]
Some observers now believe that the cabinet will have more wiggle room for fiscal expenditures.
The timing of the cabinet overhaul “is interesting, to some extent surprisingly, it’s precisely when Europe is probably more accepting of fiscal relaxation,” Gilles Moec, chief European economist at Deutsche Bank AG, said in the article. “But this relaxation is acceptable only if structural reforms come through.”
iShares MSCI France ETF
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