France surrenders - this time, it's to debt

[Darion]

Link to Telegraph

France is bankrupt and can no longer afford to pay its workers generous salaries and subsidies, its prime minister has declared.

Francois Fillon made the undiplomatic outburst during a trip to the French island of Corsica, where farmers were demanding more government money.

"I am at the head of a state that is in a position of bankruptcy," he said.

"I am at the head of a state that for 15 years has been in chronic deficit. I am at the head of a state that has not once passed a balanced budget in 25 years. This can't go on."

Mr Fillon's government is due to announce the 2008 budget this week with a deficit of €41.5billion (£29billion).

[Isaviel]

I wonder what kind of effect this will have on the businesses in France since I work for one. I know the French state bailed our company out of bankruptcy years ago but since then the company had far succeeded what it ever was. I hope this doesn't have a negative effect on us.