Things are not looking good for France.
French President Nicolas Sarkozy cut short his vacations to call an emergency meeting with his financial advisors this morning.
According to reports, Sarkozy called the meeting in order to keep tabs on France’s attempts at deficit reduction, on the heels of fears that the country could lose its coveted AAA credit rating. He said that new measures aimed at keeping the country on track will be announced August 24.
France has tried for years to reduce its budget deficits without success.
With the second-largest economy in the EU, France has played a key role in trying to maintain stability throughout the sovereign debt crisis. Its own public debt stands at 81.7%, but with a growth rate of only 0.2% in the third quarter the country could soon be facing problems of its own.
The meeting could also be the newest sign that contagion fears are beginning to take root.