For the first time since 2009, France has shown a drop of 2.4 percent in economic growth. This is the first lose the country has seen in 3 years, but as industrial and exporting competitiveness lessens the countries foresees job loss in some of the largest manufacturing companies in France: Seat, Puegot.
President Hollande is currently proposing a 20 billion euro tax increase and a 10 billion euro budget cut to curb a potential deficit and encourage more reform in the country. France being the second largest economy in the Euro Zone showing such catastrophic reports forced the Euro to its lowest value of the year, $1.27. The French reforms are to encourage Spain and Italy, who both have shown a reverse turn of luck after healthy growth in the last quarter to be met by equal lost in the fourth quarter, to adopt a similar, or more drastic, approach to policies.
Frances projected losses for the first quarter of next year put further pressure on Germany, the most powerful economy in the Euro Zone, who showed signs of slowing in industrial output last quarter, to maintain its strength to prop up the European Union.
The proposed French tax increases could potentially harm the countries next quarter output more than it would benefit. Since the funds are not being used to support social programs, that are being slashed in the 10 billion euro budget cut, but instead are solely being pooled to reduce the deficit incurred by encouraging manufacturing companies to maintain a high yield.
http://www.bloomberg.com/news/2012-11-09/french-recession-looms-as-industrial-production-slumps.html
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