Bickering between France and Britain over debt levels accomplishes nothing. The fact that borrowing is more costly for France, despite Britain’s larger debt-to-GDP ratio, highlights the inherent problems of a single currency in Europe. The economies of Eurozone nations, as well as fiscal policies, are all different. But with the establishment of the Euro, these countries are unable to react to changing economic conditions individually. It is this lack of flexibility that makes French debt riskier. Britain can simply print more Pounds.
Read more at Project Syndicate.
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