On May 29th, France will vote on the EU constitution. If the people vote ‘no,’ as most polls currently predict, the EU’s future  will be severely jeopardized.  With a sluggish economy and high unemployment, France’s economy is among the worst in the EU. The French have found scapegoats for their economic malaise in the newest members of the EU, certain central European nations, who are enjoying unparalleled growth. France has accused these nations of stealing valuable capital and jobs, with their high interest rates and low wages. Much of the reason these economies are performing so well however stem from expectations that they will soon be allowed to switch over to the Euro currency. A French rejection of the Constitution will delay this change, as well as many other economic benefits promised to the new members within a few years. The International Herald Tribune reports:

Eastern European currencies may look a little rich at present, but valuations are being supported by large capital inflows into the region and the buildup of foreign reserves. A decrease in foreign direct investment would be…damaging to Eastern Europe’s capital markets.

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