"My view is France is far from being a
"basket case", and is capable of implementing reform in a way which is
different from much of Southern Europe. Look at the fact they didn't
have a property bubble when Spain and Ireland did. Their banks were
better regulated, it's as simple as that.
France may have a
large state sector, but so does China. maybe people don't like that, but
it isn't clear what this means for the long term growth rate.
In fact, France has a lot better demographic profile than Germany and
the economy - despite the current account deficit - is more balanced
with domestic consumption.
My bet: France is as much core
Europe as anyone (more so than Finland or Holland imho) and the biggest
risk to the French sovereign is from an Italian default."