Paris pressed to show fiscal discipline

France, one of the most creditworthy members of the eurozone, seems a long way from the economic turmoil in Greece. But the crisis of confidence afflicting some of the bloc’s peripheral members is also having reverberations at its core.

At the very least, say analysts, the eurozone’s second-largest economy will come under intensifying scrutiny and pressure to show the fiscal discipline lacking for much of the past 30 years.

Apparently convinced in the early part of 2010 that voters would be prepared to accept further welfare reform, President Nicolas Sarkozy seems increasingly determined to overhaul France’s costly pay-as-you-go social security system, including pensions.

ESO: Background information: Sarkozy to act over pensions shortfall http://www.europeansources.info/record/sarkozy-to-act-over-pensions-shortfall/

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