Analysts say that while Germany remains EU's senior player, the debt talks saga has shown France can still be a key counterweight power.
After last week’s referendum in Greece rejecting bailout terms Paris played a key role in helping Athens say analysts and Greek minister.
President François Hollande publicly backed Athens' proposals being studied by international lenders and debated in Greek parliament.
Greek media reports claim that French finance ministry experts were helping Athens prepare its proposal of reforms for international creditors.
'We underestimated their power': Greek government insider lifts the lid on five months of 'humiliation' and 'blackmail'
In this interview with Mediapart, a senior advisor to the Greek government, who has been at the heart of the past five months of negotiations between Athens and its international creditors, reveals the details of what resembles a game of liar’s dice over the fate of a nation that has been brought to its economic and social knees. His account gives a rare and disturbing insight into the process which has led up to this week’s make-or-break deadline for reaching a bailout deal between Greece and international lenders, without which the country faces crashing out of the euro and complete bankruptcy. He describes the extraordinary bullying of Greece’s radical-left government by the creditors, including Eurogroup president Jeroen Dijsselbloem’s direct threat to cause the collapse of the Hellenic banks if it failed to sign-up to a drastic austerity programme. “We went into a war thinking we had the same weapons as them”, he says. “We underestimated their power”.
After Paris talks with Greek counterpart, French finance minister offered support for new timeframe or terms but not cancelling the debt.
François Hollande says new institution to save or shut troubled eurozone banks will spare governments, but financial experts are sceptical.
The French government plans a 7 billion-euro credit for PSA Peugeot Citroën, conditional to increased state board represention and fewer job losses.
Last weekend, the French government announced it had agreed to issue a state guarantee for Crédit Immobilier de France, a major cooperative-owned mortgage lender for low-income households. The bank ran into severe liquidity problems because of its structural dependence on what was cheap financing from the credit market. The new soicialist government’s move was widely portrayed as a rescue of the troubled mortgage lender. But nothing could be further from the truth, argues Mediapart’s economics and finance correspondent Philippe Riès. CIF is to be run down, with serious consequences for jobs and modest house-buyers, while the real winners of the guarantee are the big banks. For they have escaped helping in a bailout and are now sure their loans to CIF will be repaid.