Word has been spreading that France could be the next country in the eurozone to experience a credit downgrade by Standard & Poor’s, which could exacerbate the already mounting panic. In fact, it is projected that the downgrade, if it happens, will be before Christmas which is causing concern over whether or not the euro can survive.
If Standard’s & Poor’s should in fact downgrade France from its current AAA rating, this would be one more country in the area that would have trouble in the financial markets in raising funds. After a hastily thrown together deal whilst in Brussels, there is some doubt as to whether or not the euro can survive. With few in Greece having the ability to stay solvent, more and more experts finally believe that this country should leave the single currency of its own accord.
However, the potential now for France to lose its current rating is adding fuel to the fire of uncertainty and many are finally coming to the realisation that the single currency might be on its last legs. George Osborne and David Cameron are making it a priority to do what they can to see to the longevity of the euro because ‘disorderly breakup’ would have devastating consequences for the UK; not only one the UK for that matter, but throughout all of Europe as well.
Some feel that France was looking to distract the world by pointing fingers at the UK whilst they were trying to hide the fact, or at least deflect attention, that their country was in dire financial straits. At the moment there is a cessation to the bickering between the two countries as they attempt to allay further fears. However, with the latest news that S&P will most likely downgrade France in the coming days, the panic is sure to begin again.