Even with all that stimulus, France is now totally bankrupt according to its labour minister. From The Telegraph in the UK via Instapundit:
Michel Sapin made the gaffe in a radio interview, which left French President Francois Hollande battling to undo the potential reputational damage.
‘There is a state but it is a totally bankrupt state,” Mr Sapin said. “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.’
The comments came as President Hollande attempts to improve the image of the French economy after pledging to reduce the country’s deficit by cutting spending by €60bn (£51.5bn) over the next five years and increasing taxes by €20bn.
Why saying what he said is considered a “gaffe” is beyond me since unless there is a bit of reality added to the actions being taken there is no reason for anyone to accept the need for cuts to spending and the deficit. But Keynesian theory or not, this is what people are actually doing and it’s not as if the French economy were overheating.