French economy test for Sarkozy

PARIS, Oct. 17 (UPI) -- French President Nicolas Sarkozy may face his toughest challenge in bringing France out of a mounting debt crisis, the New York Times reports.

One official described the state of economic affairs in France as “bankrupt” as the public debt in France continues to outpace other European Union members.

Employees at state-controlled companies, such as railroad, power, and postal facilities, plan a one-day strike Thursday, called “Black Thursday,” to protest Sarkozy’s move to cut $7 billion in government expenditures by ending special pension privileges at state-owned companies.

Sarkozy faces criticism for his hodge-podge array of economic reforms, after he campaigned on his ability to confront complex issues.

“The real problem of Nicolas Sarkozy is not that he wants to change things – the country elected him to change things – but that the economy is in such bad shape,” Manuel Valls, the Socialist mayor of Evry, told the Times.

Sarkozy’s 2008 budget includes a $59 billion deficit but reportedly does nothing to reduce the public debt, nor addresses spending or borrowing to curb spending.

France spends the most of any EU member on the public sector in relation to gross domestic product.