First the media is going to smear him, then they will try to go after him legally, then he will be shouted at and ganged up on in the European Council, and if none of that works, France will be attacked financially and the ECB will let it happen.
and if none of that works, France will be attacked financially and the ECB will let it happen.
This is an underrated point. France has a rope around its neck that the EU can tighten or loosen at will: the Euro. No country in Europe will be able to have sovereign control over its own policies as long as a foreign entity controls their currency. Especially a country as indebted as France is extremely vulnerable to financial suffocation by the ECB.
Yes, but I think the causal link is a bit more subtle. The ECB can simply signal that it doesn’t consider France financially sound and then sit back instead of acting as lender of last resort while the markets stop refinancing France’s debt. Basically, what happened to Greece.
First the media is going to smear him, then they will try to go after him legally, then he will be shouted at and ganged up on in the European Council, and if none of that works, France will be attacked financially and the ECB will let it happen.
This is an underrated point. France has a rope around its neck that the EU can tighten or loosen at will: the Euro. No country in Europe will be able to have sovereign control over its own policies as long as a foreign entity controls their currency. Especially a country as indebted as France is extremely vulnerable to financial suffocation by the ECB.
Yes, but I think the causal link is a bit more subtle. The ECB can simply signal that it doesn’t consider France financially sound and then sit back instead of acting as lender of last resort while the markets stop refinancing France’s debt. Basically, what happened to Greece.