I just read (on a dead-tree source, and I can’t find the link) that French president Nicolas Sarkozy is saying that Standard & Poor downgrading France’s bond rating is entirely political, that the UK is in worse shape financially than France is but they didn’t get downgraded.
True, I don’t think that Standard & Poor’s rating system is all that great, what with them rating firms that were neck deep in CDS as AAA before that house of cards came tumbling down in 2007.
But the fundamental difference between the UK’s economy and France’s is that the UK has control over its own currency and France doesn’t. Not that Sarkozy and Merkel will ever admit that they should stop demanding more austerity, even as Standard & Poor blames austerity measures for their downgrade, because they’ll never admit that the Euro is a failed experiment.
Austerity is like aspirin in Europe – it solves every problem.