Sarkozy’s chances of re-election have taken a battering as France is no longer judged the safest of credit risks. What this means is that the French backed €uro bailout fund is no longer a AAA credit risk. Slovakia, Italy and Austria also got downgraded. Greek debt restructuring talks have broken down and Greek 10-year debt is trading at 20c/€ to face value. Which shows what the market thinks of  their chances of getting their €uros back… 

Though the economic prospect of a French downgrade is rather scary, the political repercussions are frankly hilarious. Sarkozy is in an election year for one,  and his head of the Banque de France has oeuf all over his face. Back in December a mighty row broke out when Christian Noyer said that Britain’s credit rating should be downgraded before them. It was a typical attempt to try to drag us down with them. Well S&P have spoken.

As Lord Nelson might have said “I see no credit downgrade.”

Labour types are scraping the barrel this morning claiming that Newt Gingrich has “stolen” Ed’s much derided “predators” line. Tom Watson is crowing, Political Scrapbook are grandstanding and Guido is laughing. Ed isn’t even the first European leader to develop the theme. Rewind to 2007 and enter stage right French Presidential candidate Nicolas Sarkozy:

As the news filtered through yesterday that the former French president Jacques Chirac had been found guilty of corruption Chris Bryant took to Twitter:

bbc.co.uk/news/world-eur… I always thought that M Chirac was dodgy—
Chris Bryant (@ChrisBryantMP) December 15, 2011

But what’s this Early Day Motion from 2004?

“That this House celebrates the 100th anniversary of the Entente Cordiale; notes that, notwithstanding mutal stereotypes of haughty Brits and arrogant Frenchmen, relations between France and the UK have strengthened dramatically in the intervening century; further notes that many Britons enjoy holidays and have holiday homes in France and that three million French tourists visit the UK every year, spending £694 million; welcomes the visit of President Chirac on 18th November; and wishes him bon voyage.”

The proposer was none other than Chris Bryant…

Via @chadnoble

We think of France as far more socialist than Britain yet French middle class families are far better off than their British equivalents in after-tax terms, despite higher basic rates. French taxpayers get an allowance of up to €2,300 per child under 7 years of age called les frais de garde d’enfants towards the costs of child care outside of the home, a small tax rebate called les frais de scolarité for each child in education and up to €6,000 rebated for l’emploi d’un salarie a domicile covering a house-keeper or nanny. In addition there is the quotient familial to minimise the impact of higher rates of taxation on families with children, it actually increases your tax allowance as you have more children. All these fiscal incentives encourage the French tax-paying middle classes to have kids.

The think-tank research out this morning showing that Britain is the worst country in Europe for taxpayers to have kids is only the half of it. In Britain we incentivise those who can’t afford to have children to have kids by paying them more welfare benefits and upgrading their state housing. This has created a multi-generational underclass who vote Labour to keep their benefits. Anyone would think it was Gordon’s deliberate plan…

So the explanation for staring at the Brazilian girl’s ass was that he was moving out of her way.  Sure he was.  So now explain his point of view in relation to this French derriere…

Michelle might buy it once, but twice?  It is clear to every guy what these two presidents have been comparing during the photo line-up.

Via : Englishman’s Castle

Nick Clegg has broken ranks with the political establishment on Trident, telling Nick Robinson “We have to be realistic and candid about what we can and can’t afford as a nation”.

During the Cold War the logic of Trident and other nuclear missile systems was compelling, now the threat is from terrorists and rogue states the case for Trident is nowhere near as strong.  The Russian nuclear arsenal is much reduced from the Soviet era, so any future threat response imaginable need not be made to meet an over-whelming massive multiple warhead nuclear attack from a hostile superpower.

Yet the Tory and Labour party establishments remain committed to the U.S. supplied Trident system.  The £100 billion price tag for a system that isn’t really independent is too much in these circumstances.  Britain needs a much reduced smaller bespoke system along the lines of the French force de frappe.  Something more akin to smart missiles which can be launched from air, land or sea.

Nick Clegg has asked Ming to review the LibDem approach to strategic defence.  The military top brass will always demand expensive new toys, just as trade union leaders always demand pay rises.  The Tories are also reviewing defence matters.  £100 billion is a lot of money to pay for the wrong insurance policy.

Guido is looking forward to summering at the Maison Secondaire even more this year. France has just cut booze and restaurant sales tax from 19.6% to to 5.5%. Booze taxes are already reasonable in France, this makes going out even more reasonable.  A three course meal in the best restaurant in the town near Chez Fawkes costs about the same as a starter in London or Dublin.  We all have to do our bit to boost international trade…