France’s government was plunged into an embarrassing row yesterday after a minister said the country was ‘totally bankrupt’.
Employment secretary Michel Sapin said cuts were needed to put the damaged economy back on track.
‘There is a state but it is a totally bankrupt state,’ he said.
‘That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.’
Totally bankrupt: Michel Sapin, who is in charge of the employment ministry in Paris, made it clear that his government’s tax-and-spend policies are just not working
In a frantic damage limitation exercise yesterday, colleagues in the Socialist administration said he was only highlighting faults of the previous government of Nicolas Sarkozy. Finance minister Pierre Moscovici said: ‘What he meant was that the fiscal situation was worrying.’
But a poll yesterday by Le Figaro newspaper showed eight out of ten readers agreed that France was indeed bankrupt.
Choosen excerpts by Job Market Monitor from