I won’t deign to discuss in detail the ridiculous spat between France and Britain over the credit ratings on government debt. French politicians actually managed to damage the market’s perception of France’s credit-worthiness by their foolish outbursts. They are right that many of the fundamentals are worse in the UK than in France. However, when they point to lower growth in the UK they ignore the fact that this is largely due to the UK’s deficit reduction strategy – at least we have one! Also, we have conducted proper stress tests on our banks, something which neither France nor Germany has done, with the result that the market can be fairly certain that the UK government will not be faced with bailing out banks again, something which cannot be said for France.