Cac 40 slides as minister declares France “bankrupt”
City Index January 29, 2013 8:45 PM
<p>The French Cac 40 index has retreated after the nation’s labour minister declared the country has run out of cash.</p>
The Cac 40 index has lost some ground in trading today (January 29th), after the French labour minister declared the country has run out of money.
Michel Sapin declared the country was "totally bankrupt" in a radio interview on Sunday, but later told the AFP news agency that he was describing the state of finances in the past and his comments were meant to be a joke.
Since the politician's comments were broadcast, French policymakers have rushed to defend the economic health of the nation, with finance minister Pierre Moscovici stating that Mr Sapin's words were not appropriate.
"France is a truly solvent country, France is a truly credible country," he stated.
The nation's public debt total reached 90 per cent of the value of its output in the economy last year, which is higher than the European Union target of 60 per cent.
At 11:50 GMT, the Cac 40 retreated by 0.4 per cent to an index value of 3763.6 points.
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