France played a decisive role in shaping not only the euro system but the entire European project. This history has predisposed French leaders to the goal of preserving the euro at all costs. Those costs, as we explained in Part 1 of this article, have become quite insupportable. A new strategy is needed, and France’s role in shaping it will once again be pivotal.
When French President Francois Hollande unveiled a plan in November for a business tax credit and higher sales taxes as a way to revive the economy, he was implementing an idea championed by economist Gita Gopinath.
PSA Peugeot Citroen appointed Louis Gallois, former head of planemaker Airbus’s owner, as France’s board representative at Europe’s second-biggest carmaker following the government’s move to help the company’s bank unit.
European Aeronautic Defence & Space Co. named Tom Enders chief executive officer from June 2012 to succeed Louis Gallois as part of a management reshuffle aimed to maintain a balance between French and German shareholders.
France’s budget minister floated the possibility of buying a stake in PSA Peugeot Citroen after the ailing automaker announced second-half writedowns of 4.13 billion euros ($5.53 billion) amid Europe’s plunging auto sales.
European Aeronautic Defence & Space Co. said the World Trade Organization decision that Airbus SAS benefited from illegal subsidies to build some aircraft won’t hinder the development of the A350 plane.