France isn’t that far away from a sovereign debt crisis, and Greece’s problems aren’t going away either, according to John Mauldin, Chairman of Mauldin Economics. Mauldin described Greece’s latest agreement with its creditors as just another example of kicking the can down the road. ‘They’re borrowing money that they can’t pay, on top of money that they already can’t pay,’ said Mauldin. On Tuesday, Greece reached an agreement with its creditors on new bailout terms, but Mauldin believes a Greek exit from the eurozone remains a possibility in the future. ‘There has never been a monetary union in the history of the world that has stayed together, that hasn’t fallen apart, such as the Euro, without having a fiscal union,’ said Mauldin, who believes the next crisis will prompt the creation of a true fiscal union. ‘I think they actually do this, and I think they do this when France itself goes into a sovereign debt crisis. And France is not that far away from it.’ Mauldin said France has no way to grow their way out of its current debt problem. Mauldin said a crisis may be a few years away, but at that time Europeans will realize the best course is to lump all of their debt together. Mauldin spoke with TheStreet’s Rhonda Schaffler at Camp Kotok, an annual gathering of economists and money managers in Maine.
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