Governments with huge deficits will be reluctant to increase taxes - The French 'planning economy' model

So they (goverments) will instead cut spending, so in the sense they will cut services across the board; usually essential. But just build a lot of roads.

It will be interesting to see which governments will essentially implode and that given time line is for implosion is hard to predict, still it might be sooner than we think

from Bloomberg (re: France goverment fiscal policy and credit rating)

“France is in a dreadful debt dynamic,” said Guillaume Sciard, who oversees 3 billion euros ($4.4 billion) of bonds at Barclays Wealth Managers France in Paris. “France will lose its AAA rating by 2012. In Europe, Germany may be the last to potentially keep its AAA.”