• Supply constraints are dominent in French economy
• France remains largeley incapable of creating jobs
• Purely speculative banking activities should be sidelined
• Low rate climate is major asset for French finances
• Hope ECB rate cut will help revive interbank market
• Takes time for deposit rate cut to have impact
• SMP bond buying scheme helped relieve temporary tensions
• In long-term only states can resolve bond market problems
• France needs extra efforts in coming years to meet deficit targets
• Should focus on spending cuts for future deficit goals