The president of the European Central Bank Jean Claude Trichet has criticised the French population for spending excessively in comparison to its gross domestic product, seeing them top the table as Europe’s prime ‘big spenders’.

In a statement made today, Trichet suggested that the French economy could be facing significant financial problems as it continues to outspend against its Eurozone neighbours, which has seen the French national deficit skyrocket, to the criticism of European authorities and neighbouring economies.

The news came off the back of Prime Minister Fillon’s warning that the French national finances were critical, a subject that has caused a great deal of unrest and political pressure from the European Union and neighbouring Member States within the thirteen nation Eurozone.

In retaliation, the French authorities have hit out at the European Central Bank, blaming them for the strong euro and slow growth, which is hitting the French economy hard. However, budget figures released earlier last week revealed that the French public finances were in a much worse state than had previously been expected, fuelling fears that the public coffers could soon be running dry.

President Sarkozy, elected on an agenda for widespread economic reform, has pledged to wholly eradicate the French budget by 2012 at the latest, by cutting taxes, slimming the bulging public sector and encouraging economic growth in France independently from Eurozone policy.

However, attempts to ring in economic change have thus far met stiff competition from decades of set attitudes. Whilst the French economy is seeing some progress, the state of public finances according to last week’s reports still suggests there is some way to go before France can truly relax amongst its European counterparts.

The French economy is currently suffering from growing unemployment and sluggish economic growth, as a result of engrained attitudes surviving within the French economy.

Tags: European Economy News //