France love-hate relationship with the €

Bloomberg Economics ran euro-area countries through 10 economic tests to capture the extent to which member states reaped the benefits of greater stability and economic integration. Of the 16 countries tested, six ended up with As, five got Bs and another handful scored Cs.

The worst marks went to 3 of Europe’s 5 largest economies: France, Italy and Spain. These countries generally enjoyed a mixed blessing upon joining the euro. First, greater credibility led to substantial easing in their financial conditions. Growth soared, but without sufficient structural reforms, their economies overheated and competitiveness deteriorated. The crisis then led to a brutal adjustment and threw into light the lack of fiscal capacity, at the country and at the euro-area level, to soften the impact of shocks.” — Maeva Cousin, Bloomberg Economics.

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