Downgrade threat to France haunts Sarkozy

Article discusses the French perspective of the outcome of the discussions at the European Council, Brussels, 8-9 December 2011 at which EU leaders (except the UK) agreed on a new treaty to tighten fiscal discipline in the eurozone and address the bloc's debt problems. The treaty, an intergovernmental agreement outside the EU legal framework, will be drafted by March 2012 and opened to ratification by nations outside the 17-member eurozone.

For President Sarkozy facing a Presidential elction in 2012 an emphasis on the 'new Europe' being an intergovernmental structure is critical.

More ominous is the prospect of the loss of France’s triple A credit rating status. It would be another lurch in the crisis which Mr Sarkozy had hoped the summit – unlike those before it – would help prevent.

ESO: Background information: Rating agency warns EU, major banks on credit worthiness http://www.europeansources.info/record/rating-agency-warns-eu-major-banks-on-credit-worthiness/

ESO: Background information: Eurozone countries sign-up to closer ties http://www.europeansources.info/record/eurozone-countries-sign-up-to-closer-ties/

ESO: Background information: Paris wary of ceding power to Brussels http://www.europeansources.info/record/paris-wary-of-ceding-power-to-brussels/

France24, 15.12.11: To lose AAA rating would not be 'cataclysm', Juppé says http://www.france24.com/en/20111215-france-alain-juppe-triple-a-rating-standard-poor-moody

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