Tuesday, January 17, 2012

French media views to the impact of being downgraded


"Tribune", "Le Parisien", a French television station and other media on January 13 and 14, the international rating agency Standard Poor's sovereign credit rating to France dropped from 3A 2A + , and to downgrade the French economic, business and personal impact of the correlation analysis, are summarized as follows:

Nationally, the cost of debt will rise, interest rates or the growth of 1 percentage point more than this year the state will pay 10 billion euros. Analysis of media, said higher interest rates will lead to the real estate market downturn, the resulting decline in industrial production-related, but including public hospitals, post offices, railway companies, including the public sector and local governments will increase the cost of borrowing, which will bring large-scale, multi-level effects.

In terms of firms, large enterprises generally believe that the
re will not be much effect, because investors have been prepared and large companies more likely to get investment and borrowing. Puts a greater impact on small businesses suffer, SME associations in France, said French credit was downgraded, SMEs will postpone hiring employees, slowing business investment, which will further increase the pressure on employment.

Personally, the biggest impact may be to increase the tax burden. Sovereign credit was downgraded, the French finance minister Ba Luan said it would continue to tighten monetary policy, which means that the next government will not take measures to stimulate the economy such as tax breaks to encourage consumption and investment, and may also allow individuals to bear additional tax burden. In addition, personal loans more difficult, higher interest rates lead to higher prices, which may be the next personal problems.

Law and Order generally believe that France was downgraded
as one of nine the countries, the crisis-ridden for the euro area will be another big shock, European countries are working to rescue the euro area, Standard & Poor's, and this will be a heavy blow to investor confidence in the euro area, the number of months all the way down the euro will face more disastrous situation.

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