Though France currently boasts an AAA rating and has its debts under reasonable control, domestic issues could knock it off its perch sooner rather than later, argues Hamish McRae, chief economic correspondent of The Independent newspaper.
The expert commentator told RT that a French economic collapse could mean that the next head to roll after Silvio Berlusconi’s might well be that of Nicholas Sarkozy.
In the meantime, Italy could find a way through the crisis if a new and competent government of technocrats gets the seal of approval from the IMF. But one way or another, it looks like clutching at straws since the new government will have to pass a fresh bailout plan which is necessary to get the latest €8 billion loan.
Since the EU is considering drafting in Chinese financial help, this is a chance for China to play a big global role and stabilize the world’s financial system.
On the other hand, solving the eurozone crisis would serve as a great opportunity for China “to show Europe that the euro could be finished by Easter.”
The newly-announced plans of France and Germany to create a smaller, more secluded “eurozone” do sound realistic to the economic commentator.
“The big game is to preserve the EU, not to preserve the euro. If the euro has to go – than it is better that it should go,” Hamish McRae argues.