Euro debt crisis, next stop : France. Crise de la dette souveraine en Europe : la France, prochaine victime

In the current debt crisis, many pundits have been fearing the worst for the UK and felt comfortable with Germany and France.

Recently though, the trend has been somewhat reversing for France. Nobody talks about it openly but the debt markets are starting to wake up.

The UK government is engaged in a courageous consolidation programme. The aim is to breakeven in 4 years. France wishes to reduce the deficit to 3% and then nothing.
Obviously, while France prides itself in cancelling garden parties for the Bastille Day and saving €750,000, the UK cuts in the muscle.
The France - UK spread has reversed and may widen more quickly if France does not show a credible plan soon. That would be a financial and political fiasco.
With general elections less than 2 years down the line, the incumbent president faces either general strikes or market jitters.

Buy CDS on French debt. The government is wasting precious time but the markets are awake.