France’s and Germany's opposing economic policy choices

Economic policy in France and Germany aims at distributing income to households to boost their purchasing power. In France, this is done by increasing the fiscal deficit; the risk is that there may be a fiscal insolvency crisis in the future triggered by a rise in real interest rates. It also has to be pointed out that this is a tax on savers to the benefit of those that receive government transfer payments; In Germany, this is done by increasing real wages quite markedly, which worsens German companies’ profitability and competitiveness, leading to market share losses. So a choice must be made between a possible future (and perhaps serious) risk in France and a present risk - but whose magnitude is known - in Germany.