“France is to freeze spending on defence, higher education and research in a frantic bid to meet European Union deficit targets this year, tightening fiscal policy yet further as the country slides into deep slump. The severity of the downturn has caught officials by surprise. Markit’s survey data for French manufacturing and services fell to 42.3 in February, plunging at the fastest rate since the financial crisis in early 2009. Anything less than 50 signals contraction. Markit warned that the country may be tipping into a ‘downward spiral’ as sliding confidence causes businesses to delay spending.”
