The French government has been flailing about to counter economic trends that started while Nicolas Sarkozy was still president. And one of the most bandied-about catchwords these days is “competitiveness”—entailing the cherished and untouchable 35-hour workweek, equally untouchable wages, and sky-high employer-paid payroll taxes and social security charges. An explosive mix.
Europe – France
French Government Fires Off Protectionism, Hits Consumers
by Wolf Richter • • Comments Off on French Government Fires Off Protectionism, Hits Consumers
That France’s economy is hurting is an understatement. Manufacturing and service indices tested depths not seen since 2009 during the trough of the financial crisis. Cited reasons: “unfavorable business climate and lack of visibility.” In its desperation, the government deployed its big gun, a man with a vision: Industry Minister Arnaud Montebourg. Him, with his big foot in his mouth.
A Capitalist Revolt in Socialist France
by Wolf Richter • • Comments Off on A Capitalist Revolt in Socialist France
The French government is trying to reign in its deficit by jacking up taxes, including the capital gains tax—an old philosophical pillar of the French left. But an explosive essay published last Friday hit a nerve with entrepreneurs, venture capital investors, artisans, and mom-and-pop business owners. And their anger, which spread across the social media, the papers, and finally TV news, turned into an open revolt.
Worse Than The Infamous Lehman September: France’s Private Sector Gets Kicked Off A Cliff
by Wolf Richter • • 3 Comments
The Paris auto show should have been exciting. Over 100 new models from econo-boxes to exotic prototypes. Chicks next to some of them. Nausea-inducing colors, downsized motors. Something for everyone. But it had been preceded by supplier events loaded with the dire verbiage of an industry on a death march. Particularly in France, whose private sector is veering into economic fiasco. And on Monday, it became official.
The Eurozone Con Game Just Keeps Cracking
by Contributor • • 3 Comments
“European leaders have not been able to meet their responsibilities,” French Prime Minister Jean-Marc Ayrault said about Germany and some other countries that are reluctant to pile more taxpayer money on Greece, whose economy is grinding to a halt, and whose government can no longer fulfill its promises. Yet, the very “responsibilities” of these “European leaders,” many of them unelected bureaucrats, have turned into a can of worms.
French Rebellion Against Unelected Bureaucrats: “European Coup D’Etat And Rape Of Democracy”
by Wolf Richter • • 1 Comment
When the German Constitutional Court nodded with a stern smile on the ESM bailout fund and the Fiscal Union treaty, the world, or at least the politicians at the top, breathed a sigh of relief. After months of verbal warfare, the German revolt was over. But steam is billowing once again from the rusty pipes of the Eurozone. This time in France, where the Fiscal Union treaty has been silenced to death—and it could blow apart the whole construct.
The French Government Gets Whacked, Even The Left Is Angry, And Hollande Gets Slapped In The Face
by Wolf Richter • • Comments Off on The French Government Gets Whacked, Even The Left Is Angry, And Hollande Gets Slapped In The Face
France is mired in a stagnating economy. The private sector is under pressure, auto manufacturing in a depression. Unemployment hit a 13-year high. Over 3 million people are out of work. Youth unemployment of 22.7% belies the catastrophic jobs situation in ghetto-like enclaves. Gasoline and diesel prices are near record highs. So there are a lot of very unhappy campers. And it could turn ugly.
Russia’s Gazprom Tightens Stranglehold On Europe, France Falls: Natural Gas War Gets Dirty
by Wolf Richter • • Comments Off on Russia’s Gazprom Tightens Stranglehold On Europe, France Falls: Natural Gas War Gets Dirty
Why would France suddenly prohibit shale gas exploration? Sure, there are environmental issues: flammable drinking water, earth quakes, cows that die, radioactive sludge in sewage treatment plants…. But French governments have had, let’s say, an uneasy relationship with environmentalists. Its spy service DGSE, for example, sank Greenpeace’s flagship, the Rainbow Warrior, in the port of Auckland, New Zealand, killing one person. No, there must have been another reason.
The “Pauperization of Europe”
by Wolf Richter • • 7 Comments
It started on Monday. “Poverty is returning to Europe,” said Jan Zijderveld, head of Unilever’s European operations. The third largest consumer products company in the world was adjusting its commercial strategy to this new reality, he said, by redeploying to Europe what worked in poor countries of the developing world. Other stars of the industry affirmed it. “The logic of pauperization,” L’Oréal CEO Jean-Paul Agon called it.
But Who The Heck Is Going To Do All The Bailing Out?
by Wolf Richter • • 10 Comments
Spain’s banks are getting bailed out with €100 billion. It won’t be enough, but it’ll buy time—a Eurozone mantra. Three of Spain’s seventeen heavily indebted regions asked for a bailout from the central government, and more are coming, but the central government can’t bail out anything because it’s broke. It needs a bailout for itself and for its regions. A bailout far larger than any of the prior bailouts. And then there’s Italy.