France and Germany are facing recession worries and Italy is already shrinking. The Eurozone is disinflating. Is it time for a New Deal?
The answer according to French Economy Minister Emmanuel Macron, is yes.
By referencing the game-changing New Deal of 1930's in an interview published in the weekly Journal du Dimanche, Macron showed exactly how serious France views the Eurozone crisis to be.
It is also likely to be another move by the the French to struggle free from the swaddling bands of fiscal rectitude, such as budget deficit restraints, which they and the Italians believe are restricting growth.
France is seemingly on a collision course with the EU after it became clear that it would not be able to reach the EU-stipulated budget deficit target of three per cent of GDP until 2017.
Rather than chase austerity, France would like to spend more to encourage growth and then cut from a stronger position. It is not a view shared by Germany.
Macron explained what the plan would look like:
France engages to pursue and even intensify its reforms; the European Union announces a grand relaunch plan through €300bn ($379 billion) of investments.