Just five months after the last government resigned and he took office as Prime Minister, France’s Manuel Valls must now form a new government after two leftist Cabinet rebels, Montebourg and Hamon, flayed the country’s economic policy in general and Francois Hollande in particular.
As predicted here and elsewhere, the Socialist Party is finding it increasingly difficult to carry out the austerity policy dictated to it by Brussels-am-Berlin. Hollande himself would not have adopted it had the US/EU axis not blatantly attacked his borrowing costs – as reported by The Slog earlier this year. The PS Left has been incandescent about the austerity policy since that time.
Sources in Paris confirm that Montebourg and Hamon will be fired, damaging the fragile unity of the Socialists still further. It is also thought likely that Valls will appoint more close allies to the Cabinet .... http://investmentwatchblog.com
