Economy, France | featured news

Like Barack Obama, Nicolas Sarkozy swept to power on a wave of hope for change. Sarkozy's wave crashed on the global financial crisis and his own failings.

Germany and France clashed on Wednesday over whether the ECB should take bolder steps to stem the euro zone debt crisis, with Chancellor Angela Merkel issuing one of her starkest warnings yet against fiddling with the central bank's strict inflation-fighting mandate.

France is ready to do whatever it takes to rescue Greece, the government said, and urged the debt-laden euro-zone member to swiftly implement the July 21 plan to prevent bankruptcy.

After a series of positive announcement from Greek FinMin Venizelos, rumors that Moody's would downgrade French banks and Germany was preparing for a Greece to default send equities tanking, particularly French banks.

French economic growth ground to a halt in the second quarter, raising pressure on the government to cut spending and abolish tax breaks to convince turbulent financial markets it will deliver on debt reduction targets.

French hopes for tough curbs on commodities speculation to tame soaring food prices look set to be thwarted as leading producer nations line up to oppose market interference.

Germany and France enjoyed a shock return to economic growth in the second quarter of the year, data showed on Thursday, ending their recessions earlier than many policymakers and economists had expected.

May Day protesters clashed with riot police in Germany, Turkey and Greece on Friday while thousands angry at the government's responses to the global financial crisis took to the streets in France.

French workers at a factory south of Paris free their boss after holding him hostage in a dispute over lay-offs.

Striking French workers of an American manufacturing company looked likely to hold their boss hostage for a second night on Wednesday after locking him in for more than 24 hours, as nationwide anger mounted over layoffs.