'Downgrade Britain, not us' is French reaction to threat

The ever-patriotic Bank of France, whose country is seen as odds-on for an imminent credit rating downgrade, today declared rating agencies should be focusing their sights on London, not Paris.

Standard & Poor's has already said that it may lower France's rating by two levels due to eurozone leaders' inability to deal with the financial crisis.

French politicians have been preparing the electorate for a downgrade, but today the country's central banker Christian Noyer attempted to divert the fire across the Channel.

"A downgrade doesn't strike me as justified based on economic fundamentals," he said, "Or if it is, they should start by downgrading the UK, which has a bigger deficit, as much debt, more inflation, weaker growth and where bank lending is collapsing."

In fact, Britain's growth outpaced France's in the last quarter and bank lending to businesses is as much a problem in France as in the UK.

Elsewhere, jittery bond markets gave Spain's new prime minister Mariano Rajoy some breathing space today as the eurozone struggler managed to get a 5.8 billion (£4.9 billion) bond auction away.

The rate Spain was charged to borrow for five years dropped to 4.02%, well down on the 5.28% it was forced to pay for five year debt two weeks ago.