Figure 9.9: French regional borrowing as a proportion of expenditure in 1993 (Les Budgets Primitifs des Régions en 1993)

The limits imposed by the French regional ‘economic constitution’ are relatively lax (Council of Europe, 1992, p 10). The golden rule applies here, as elsewhere, with loans being permitted for capital investments and not running costs (Council of Europe, 1992, p 32). On foreign markets the régions may borrow freely under broadly the same conditions imposed on all foreign exchange dealings (Council of Europe, 1992, p 19).