Stimulus 'has done the job' in France

France's economy has been successfully boosted by the economic stimulus its government put in place, an economic expert has said.

Professor Iain Begg from the European Institute of the London School of Economics argued that measures such as fiscal stimulus, tax cuts and lower interest rates "are now working" and this explains why France and Germany are out of recession.

He suggested those who had questioned why such measures were having no apparent effect a few months ago "will probably find that they have miscalculated" and predicted that Britain will also inevitably recover in time thanks to its own package.

France's property market may be boosted by the development and on the basis of Professor Begg's comments other countries may also benefit.

This could mean better prospects for investors in counties like the US, which introduced its own package earlier this year.

Figures from the Statistical Office of the European Communities Eurostat showed that the eurozone economy as a whole saw a 0.1 per cent contraction in the second quarter, in contrast with the 0.3 per cent growth rate seen in France and Germany, as well as Greece and Portugal.

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