France in the line of fire as alarm bells ring over its inability to adapt

FRANCE came under heavy fire on global markets yesterday reflecting fears that the eurozone’s second biggest economy is being sucked into the debt crisis after a warning that Paris’s inability to adapt should be “ringing alarm bells”.

Nervous markets also showed concern about whether Italy’s Mario Monti and new Greek leader Lucas Papademos, unelected European technocrats without a domestic political base, can impose tough austerity measures and economic reform.

European Central Bank president Mario Draghi has predicted the 17-nation eurozone will be in a mild recession by the end of the year, a view underlined by data showing the economy barely grew in the third quarter and faces a sharp downturn.