FRANCE: European decision makers cancel their vacations amid a 2.5 trillion dollar global selloff, but tourists on vacation in France could only feel worried and helpless by the financial turmoil

Record ID: 1519926

  • Title: FRANCE: European decision makers cancel their vacations amid a 2.5 trillion dollar global selloff, but tourists on vacation in France could only feel worried and helpless by the financial turmoil
  • Date: 6th August 2011
  • Summary: PARIS, FRANCE (AUGUST 5, 2010) (REUTERS) EIFFEL TOWER VARIOUS TOURISTS AT EIFFEL TOWER (SOUNDBITE) (Dutch) ERVIN VAN AERVIYEN, A DUTCH TOURIST, SAYING: "I think the economy in Europe is going down and Asia and China are going up. I think our places in the world are going worse. (SOUNDBITE) (Spanish) BEGONIA, A SPANISH TOURIST, SAYING: "In my case, I'm a civil servant. And they've taken enough money from us and the standard of living has fallen quite a bit. So I don't expect much difference. (SOUNDBITE) (English) TIM, A U.S. TOURIST SAYING: "It's a concern for all of us in the U.S. that lawmakers can figure out how balance our budget and get us out of the deficit that we're all in and also to build our economy to be the way it was so that the dollar is stronger than the euro and half of the other monies across the world. So it's much of a bigger concern in the U.S. than in years past. (SOUNDBITE) (English) JONATHAN, A BRITISH TOURIST, SAYING "I think the restructuring has been needed for a while. I think too many countries have been spending too much. And although it's painful, it's a moment in time that's needed to bring some common sense." VARIOUS TOURISTS FOUNTAINS AND EIFFEL TOWER VARIOUS BUREAUX DE CHANGE VARIOUS SIGNS SHOWING RATE FOR DOLLAR AND GOLD GOLD COINS IN WINDOW OF A GOLD SHOP, WHERE PRICES ARE RISING DAILY (SOUNDBITE) (French) STEPHANE RICHARD, A PARISIAN, SAYING "Let's see what comes of it. What happens to French debt compared to the European environment. In my own environment, it's not really having an impact." PARIS STREETS
  • Embargoed: 21st August 2011 01:28
  • Keywords:
  • Location: France, France
  • Country: France
  • Topics: Finance
  • Reuters ID: LVA7V5ONXFNNND58MAVEG7CUTRPB
  • Aspect Ratio: 4:3
  • Story Text: European policymakers were cancelling their vacations in droves on Friday (August 5) to deal with the global financial crisis, but ordinary tourists enjoying their time off in Paris could only stand by in apprehension and watch the turmoil on financial markets with a sense of unease that the 2.5 trillion dollar selloff of the past week may hit them soon.
    Markets opened sharply lower on Friday, hit by worries about Europe's debt crisis and the prospects of weak economic growth in the U.S. They rallied on news of better-than-expected jobs data released early in the afternoon, but the tone remains largely apprehensive.
    For tourists watching the clouds over the Eiffel Tower, the immediate impact of crisis boiled down to how much they would get for their dollars and dinars at the bureau de change. Worries about bond yields and risk premia were far off -- but most said they knew it would hit them soon.
    "I think the economy in Europe is going down and Asia and China are going up. I think our places in the world are going worse," said Ervin van Aerviyen, a Dutch tourist.
    Begonia, a visitor from Spain, one of the countries to be worst hit by the eurozone crisis, said she had already felt the impact, and feared more.
    "In my case, I'm a civil servant. And they've taken enough money from us and the standard of living has fallen quite a bit. So I don't expect much difference," she said.
    For Jonathan, in Paris from the United Kingdom, the crisis was the consequence of years of binge spending by governments across the Western world. Now was the time to settle the bills, he said.
    "I think the restructuring has been needed for a while. I think too many countries have been spending too much. And although it's painful, it's a moment in time that's needed to bring some common sense" he said.
    One street in Paris where the local tradesmen are feeling as if they are on a winning streak because of the financial crisis was near the bourse district, home to the capital's gold shops. Prices of the precious metal have risen to near all-time highs as investors seek refuge from the turmoil and sharp falls of recent weeks.
    But the Parisians watching the prices of the gold coins they cherish as a safe form of saving, but can decreasingly afford, were phlegmatic.
    ""Let's see what comes of it. What happens to French debt compared to the European environment. In my own environment, it's not really having an impact," said Paris resident Stephane Richard.
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