Argentina has no chance against France in this comparison

Argentina is in an extraordinary situation right now: the national team makes people at home very happy. One time. For people in Argentina, the World Cup is an escape from everyday life, where many have nothing to celebrate. The country is in a deep economic crisis. You want to say it again. Many residents do not know anything else.

Since the last state bankruptcy in December 2001, the country has slipped from one crisis to the next. Finally, the International Monetary Fund (IMF) had to lend a helping hand to Argentina last spring to prevent another bankruptcy.

Unlike the Argentine football players who go to the World Cup final by dribbling with great passion, the government cannot find a solution to this misery. More than 40 percent of the population lives below the poverty line. The inflation rate is currently around 90 percent and will reach three digits by the end of the year. Prices on menu cards in restaurants are regularly pasted – otherwise they would have to change cards every month.

Why are there so many Argentines in Qatar?

It is hardly possible to save for the middle class. Those who can convert Argentine pesos to dollars. But the government is making it harder to exchange currency so that inflation doesn’t get out of control even more. The absurd result: the middle class is spending their pesos as quickly as possible. He usually eats at restaurants, buys electronics, cars, or goes to the World Cup. This explains why so many Argentines are cheering for their local teams in Qatar. However, this consumer behavior pushes inflation even further.

Argentina was still a wealthy country in the middle of the last century. But the government ran the printing press at the central bank too often and printed fresh pesos to finance the national debt. There is also a huge mountain of debt abroad. In some provinces, too many people work in the administration at the expense of the state. This leads to a relatively low unemployment rate of 6.9 percent. But also to the fact that Argentina is now economically only a developing country.

Only at eye level in football

The only thing Argentines are still proud of for their country is probably football. Here you suddenly become equal with countries like France.

However, in the trial of economic strength, the Argentines stand no chance. France is the world’s sixth largest economy. With over CHF 40,000 per capita, France’s gross domestic product is more than four times that of Argentina. Grande Nation managed to record 7 percent economic growth last year and should reach around 2.5 percent this year despite the difficult geopolitical situation. Employment is increasing.

In addition to a weakening automotive industry, France has a strong pharmaceutical industry and is one of the world’s most important luxury goods manufacturers.

In terms of median wealth, the French population is among the 10 richest countries in the world. And while there is a large gap between rich and poor in Argentina, inequality in France is relatively moderate. This is partly due to the developed French welfare state. But it has a cost. The tax rate is 46 percent, one of the highest in the world. At the same time, the public is demanding lower taxes, but also more subsidies, higher pensions and minimum wages.

France in a reform dilemma

Public spending accounts for about 60 percent of the gross domestic product. France is constantly taking out new loans. Debt hit a new record level of 115 percent this year.

President Emmanuel Macron (44) is under pressure to save. And it wants to make the French economy more competitive with reforms. For example, by adjusting the higher protection against dismissal for employees and the pension at 62. If Macron wishes, the French should work until the age of 65 in the future.

But the unions in the country are strong. And the resentment in the population is great. When Macron wanted to impose an additional fuel tax in 2019, people flocked to the streets. The “Yellow Vests” movement was born.

In Argentina, too, people regularly take to the streets to protest, but without success. People in the country are more than willing to take on a major European nation once again and bring home their third World Cup title. A win in Sunday’s final will be the third victory for France. One of the few similarities.