"nonchalance - the trait of remaining calm and seeming not to care; a casual lack of concern." - Collins Thesaurus of the English Language
Following on our April conversation "France's Grand Illusion", where we pointed with the help of our friends at Rcube Global Macro Research that France was at some point going to face a "rude awakening", due to its structural issues, this time around, we would like to focus our attention to French 10 year government spread versus German 10 year government courtesy of our friends from Rcube Global Macro Research.
In our conversation "A Deficit Target Too Far" from the 18th of April, we argued: "We also believe France should be seen as the new barometer of Euro Risk with the upcoming first round of the presidential elections. Whoever is elected, Sarkozy or Hollande, both ambition to bring back the budget deficit to 3% in 2013 similar to their Spanish neighbor. We think it is as well "A Deficit Target Too Far" on the basis of our previous French conversation (France's "Grand Illusion").
An additional issue specific to France is the size of its private sector financing gap, which is among the highest.
"In general, the art of government consists of taking as much money as possible from one class of citizens to give to another" - Voltaire