France has entered into a recession after the first quarter of this year recorded a decline in gross domestic product(GDP) by 0.2%. France is in recession as it’s GDP has declined during the last two consecutive quarter, the purchasing power of French households in the 2012th registered a record decline of 0.9%. France with Germany is considered the country with the strongest economy and one of the most stable member of European Union. The high level of unemployment and lack of confidence producers and consumers. The unemployment reached 10.6% and it is expected that by the end of this year and the next year will increase more. Crisis attacked the strongest economy in euro zone –Germany. While initial projections predicted economic growth of 0.3% in the first quarter of this years the increase was only 0.1 percent. France must present a reliable program of structural reforms, as recent data show that the second largest European economy slid into recession. Gross domestic product (GDP) in Germany rose by only 0.1%in the January-March period, while analysts expected a stronger recovery of 0.3% after slowing from 0.7% in the last Germany was spared the worst consequences of the debt crisis, although its growth slowed down at the end of last year.