Christian Noyer, the governor of the Bank of France, said that Britain faced larger national debts, higher inflation and slower growth than France.
François Baroin, the finance minister, said Britain was “marginalised” and faced “a very difficult economic situation” because of Coalition policies.
The blunt remarks are the latest sign of Anglo-French tension following David Cameron’s refusal last week to back a new European treaty drawn up in response to the eurozone crisis.
George Osborne, the Chancellor, also provoked anger in France recently by suggesting it could be the next eurozone economy to experience a debt crisis. France and Germany want a new treaty to create a “fiscal union” of eurozone members, to control their deficits and reassure the markets.
Mr Baroin told the French parliament that the pact had been backed by every country in Europe, “with the singular, now solitary, exception of Great Britain, which history will remember as marginalised”.
He added: “Great Britain is in a very difficult economic situation, a deficit close to the level of Greece, debt equivalent to our own, much higher inflation prospects and growth forecasts well under the eurozone average. It’s an audacious choice the British government has made,” he said.
French policymakers were angered last week when Standard and Poor’s, a ratings agency, threatened to downgrade eurozone nations — including France — if leaders did not act urgently to address the single currency crisis.
But in an interview with Le Télégramme, a French regional newspaper, Mr Noyer said the downgrade did not appear “justified in regard to the economic fundamentals”.
“Otherwise, they should start by downgrading Britain which has more deficits, as much debt, more inflation, less growth than us and whose credit is collapsing,” he added. » | James Kirkup, Deputy Political Editor | Thursday, December 15, 2011
THE GUARDIAN: France stokes eurozone row with call for UK credit downgrade: Britain's credit status should be cut before France is downgraded, says its central bank governor, Christian Noyer » | Press Association | Thursday, December 15, 2011
MAIL ONLINE: France lose its credit rating? It should be the UK! blasts head of central bank amid rising tensions between London and Paris: Relations between Britain and France plunged to a new low yesterday when the head of the French central bank called for the UK’s gold-plated credit rating to be downgraded. ¶ The inflammatory attack on the British economy by Christian Noyer was quickly branded evidence of a cross channel ‘Entente Discordiale’ over the future of the euro. » | David Richards | Friday, December 16, 2011
