I must begin by saying that the Eurozone crisis is something to which I had previously not given very much time for thought, but as the situation appears to be in a steady state of decline; it is simply impossible to ignore.

We heard today that France has lost its AAA rating and so now risks what is surely an almost inevitable rise in its own cost of borrowing, already needing in the region of £241bn to pay off its debts. Only time will tell whether this news will prove ultimately damaging to President Sarkozy’s election prospects and whether this is indeed considered, in part at least, to be a reflection on the failure of his policies.

It is a genuine concern for many that countries like Italy, with debts of approximately 120% of GDP, may now be faced with the risk that spending cuts will cast already weak economies into recession.

The ongoing eurozone talks, negotiating over a second bail-out package for Greece, which could reduce its debt mountain by around £90bn, is thought to be failing, which may in-turn result in the eurozone again facing the risk of a Greek default.

How will this affect Britain?

Whether or not a government is seen as doing a good job depends partly on whether people feel good about their lives and confident about their future, but perhaps more on whether they think someone else could actually do better internally, and whether others are managing to do better overseas.

As such, the decision today to downgrade the Eurozone countries, will surely have an effect not just across the Eurozone but in the UK and elsewhere too. The economy is by far the biggest issue in British politics today and in policy terms, the question of which party can be most trusted with the public purse will undoubtedly play a huge part in determining the outcome of the next general election.

So, as France’s debt has been downgraded, but not Britain’s, does this perhaps validate the current British Government’s ethos that the shorter term pain for longer term gain is worth it, and subsequently that their policy is on course and that the government does indeed know what it’s doing?