As the Greeks look to remove their embattled Prime Minister in order to form a new coalition government in an attempt to salvage their euro status, the spotlight turns to France, where a new set of austerity measures will be announced on Monday.
Their AAA status in the financial community is very important to them, so they are looking to preserve this enviable position via the austerity route. The grand plan will be unveiled by Prime Minister François Fillon at around midday, so it will be worth noting just what it consists of and how well it sits with the people of France. The union movement is alive and well in France and they are well coordinated, so if it is not to their liking expect disruptive action of some sort to be enacted. The President, Nicolas Sarkozy has stated that they need to pass an additional €6 billion to €8 billion of austerity measures, in order to safe guard the state coffers. France intends to reduce its deficit from 5.7% of gross domestic product (GDP) this year to 4.5% next year, in an attempt to get down to the 3% limit set by the European Union, by 2013.
France is the euro zone's largest economy behind Germany, so we see this as crucial to the survival of the French President and also as setting an example for others to follow. If this package is rejected then we will need a new acronym as we add the 'F' letter to the PIIGS.
Its now the season of belt tightening and all the participants need to bite the bullet if they are to stand any chance of stopping their budgets from ballooning.
If this package meets with outright rejection then then Mr Sarkozy could be living on borrowed time and shortly find himself in the same predicament as Mr Papandreou.
Now take a look at this short list and ask yourself who, if any, will survive their next election campaign?
5. Silvio Berlusconi
We doubt if one out these five incumbents will live to fight another day and wonder what the political landscape will look like then, as the new boys on the block look to make their mark?
All bets will be off and we will bobbing around on a sea of uncertainty.
Our model portfolio is up 407.38% since inception
An annualized return of 113.83%
Average return per trade of 42.43%
86 closed trades, 83 closed at a profit
Average trade open for 45.85 days
So, the question is: Are you going to make the decision to join us today.
Stay on your toes and have a good one.
Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 2007
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.