Posted on 08/14/2007 1:21:05 AM PDT by bruinbirdman
EVEN when he is on holiday in America, Nicolas Sarkozy does not seem to stop. From the picturesque shore of a lake in New Hampshire last week, France’s “hyper-president” kept a hawkish eye on developments back home, issuing press releases on everything from the death of a popular jazz musician to the malfunction of a fairground ride.
His dynamism appears to be paying dividends in France, where business confidence has risen and unemployment has fallen to its lowest level in 25 years. The “French renaissance” was making waves abroad as well, particularly in Germany, where irritation has grown over a resurgent France striking out on its own.
The rest of the world is watching with interest: potential foreign investors, particularly from Britain and America, who had been put off by the country’s distaste for “Anglo-Saxon” capitalism, have been heartened by Sarkozy’s pro-market rhetoric.
Will France challenge German dominance of the European Union? The economy is beginning to show signs of revving up.
“There has definitely been a change of feeling,” said Nina Mitz, president of the business consultants Financial Dynamics in France. “There is a feeling that anything is possible. That things are being dealt with. There is activity. A feeling of energy.”
Sarkozy has promised to get his country working again after more than a decade in which it seemed only to snooze under Jacques Chirac.
The jet-setting “Sarko” has given the impression of being everywhere, hence his other nickname of hyper-president. On Friday he flew to Paris to attend the funeral of a cardinal. Yesterday he was back in America, joining Cécilia, his wife, for lunch with George and Laura Bush at the US presidential family’s holiday home in Kennebunkport, Maine. Sarkozy’s perpetual blur of motion is not limited to the world stage.
Seldom has such a legislative blitzkrieg been seen in the French national assembly.
A special summer session of parliament was ordered to push through a package of laws that will cut taxes for those who pay mortgages and work overtime, lower the maximum amount of tax to which an individual can be liable to 50% of their income and grant more independence for universities.
The legislation will also make it obligatory for unions to provide minimum transport services during strikes. A portion of all retiring civil servants will not be replaced. Unemployment benefits will be conditioned on active job hunting. It is all part of a wider reform, says Sarkozy, to restore France’s appetite for work and boost its productivity.
People seem to take him at his word. “With the arrival in power of Mr Sarkozy, there’s a feeling that France is opening towards the West,” said the Franco-British Chamber of Commerce.
The emphasis on wooing foreign business has been exemplified by Sarkozy’s appointment of Christine Lagarde, an American-educated lawyer, as his finance minister.
She shares Sarkozy’s disdain for the 35-hour working week and recently appealed for more productivity, saying: “France is a country that thinks. There is hardly an ideology that we haven’t turned into a theory . . . enough thinking, already. Roll up your sleeves.”
It seems to be having an effect: the business climate indicator went up and unemployment has fallen to 8%, the lowest in nearly a quarter of a century. Growth was forecast at 2.25% this year, up from 2% last year. Sarkozy hopes that the reforms will push it much higher.
This new French energy has brought Sarkozy into conflict with Germany, particularly when France seemed to steal the credit for Libya’s release of five Bulgarian nurses and a Palestinian-born doctor after months of painstaking negotiations by the European Union. Even more irritating for the Germans was Sarkozy’s decision to sell a nuclear power plant and weapons to Libya without telling Berlin.
To make matters worse, Sarkozy has been campaigning to bring the European Central Bank under political control in order to help French exports against an extremely strong euro. Such thinking is anathema to the Germans. “Sarkozy is really beginning to get on German nerves,” Der Spiegel, the weekly magazine, announced recently.
“In foreign policy there should be agreement with European partners,” said Ruprecht Polenz, a member of the Christian Democrats, the party of Angela Merkel, the chancellor. “Even if it takes time, France should act to strengthen the common European foreign and security policies.”
Some in Berlin suspect Sarkozy wants to oust Merkel as Europe’s most influential leader. German diplomats were appalled when France discussed with all its main partners, except Germany, the decision to put forward Dominique Strauss-Kahn as the EU’s candidate to head the International Monetary Fund. “Sparks are flying,” said a Merkel adviser.
Sarkozy’s domestic critics acknowledge his style - Vanity Fair magazine put him in its list of the world’s best-dressed men - but wonder if he will deliver.
He has watered down some of the reforms that he promised on the campaign trail: originally he had wanted to replace only one third of retiring civil servants to streamline the bloated bureaucracy. Under the new law, some ministries will be allowed to replace one half of retiring workers.
A big test of Sarkozy’s ability to revolution-ise France will come in the autumn when protests can be expected against the reforms.
Additional reporting: Nicola Smith
How far could the French go?
Why is Nicolas Sarkozy making such a difference?
He has been likened to Napoleon and seems to have the energy of a nuclear reactor, burying himself in every detail of government. Lunch with the Bushes at Kennebunkport, Maine, yesterday was symbolic of the change. Jacques Chirac, the former French leader, was hostile to America and “Anglo-Saxon” capitalism in general. “Sarko” is not and hopes to “deMarxify” France, which is sometimes described as a sort of “luxury Soviet Union”.
What has he actually done?
He has ditched outdated French rites such as the amnesty usually granted by incoming presidents for unpaid traffic tickets and the release of thousands of prisoners from overcrowded jails on Bastille Day. Parliament recently approved one of the country’s biggest packages of tax cuts. Other reforms will ensure a minimum public transport service in the event of strikes. Unemployment benefit will depend on active job hunting. The bloated bureaucracy is being streamlined and 22,700 posts will be left unfilled next year. More independence for universities is likely.
Is France about to take off?
It’s too early to say, but unemployment has fallen and the growth forecast is up, as is business confidence. The hardest reforms are still to come, however, and social unrest in the autumn could test Sarkozy’s determination to press on.
How will it affect the rest of us?
Sarkozy has big global ambitions for France after more than a decade in which it did little other than oppose the war in Iraq. Sarkozy almost single-handedly resurrected the European Union constitution. Other initiatives have put him into conflict with the Germans but yesterday’s lunch with the Bushes could herald the birth of a French “special relationship” with America to rival the fabled - but faltering - British one.
They will be less able to push their "progressive agendas."
Actually, those who were in what was West Germany really like France. Angela Merkel was from what had been East Germany, so it’s possible that there’s more emotional distance there.
What I admired about her was that she stood up to Chirac.
I think that she appreciates this change. Who wouldn’t?
If the average German business person feels any intimidation from France, he or she should encourage the legislature to be reasonable and roll back taxes, which increased again once Schroeder was dumped.
Sarko really does have a different perspective from most other Europeans, especially the Germans.
His distrust of socialism in any form and government regulation of all aspects in life probably stem from direct experience: learning about the country of his father becoming a Soviet satellite, wiping out centuries of tradition, religion, and order.
Germany still suffers from its guilt complex, pacifism and on-the-dole mentality, especially in the ex-East Germany. The French are very different people, and want change, which is why they voted for Sarko against Royal and the status quo.
IMO Sarko is looking West, and is a true friend of America.
George W. Bush deserves much credit for welcoming Sarko like a long lost family member, and welcoming France back into the American family.
This could be the start of a beautiful friendship!
Interesting. The world will be watching.
Maybe Sarko will be watching to see if GW follows through on the SS number, illegal aliens kicked out of jobs trick.
yitbos
I remember that Merkel was marketed as Germany’s “conservative” alternative when she campaigned and won a couple of years ago. Apparently, that was a load of crap. She’s turned out to be weak. No wonder she is overshadowed by the energetic Sarko. So far, he looks like the real deal.
I don’t think so. At least I consider myself an intellectual and I don’t hate him at all.
I see - much to my delight - that there’s a competition on.
Thank God ! I was just a bit worried that the german government would let reforms slip because of the fair economic situation germany has experienced after a prolonged season in the dark.
Bunch of French "artists and writers" huddle at some caffe, bitching and plotting the death of thousand cuts to Sarko's government. So do German counterparts. Imagine how Guenter Grass feel about this development.
The masses are always stupid. You want to make an exception of that rule ?
(I take it you are not driving a prius ;-)
to see what the french will do read your history and see what the fench have done.
wake up! some things never change.
howard abroms, palm beach gardens
It's a real nonsense to say that the unemployment rate has fallen to 8% thanks to SArkozy's election. sarkozy was elected 3 months ago, and the unemployment rate is falling down since 2 years, under Chirac presidency. And Eurostat considers that this rate is in fact higher (9,4%)
It's also wrong to say that Chirac was anti-american and against capitalism !
Many things in this article are obviously wrong, being just prejudices about France that one can usually read in teh anglo-saxon press.
delangre, paris, France
Overall an interesting article but this paragraph threw me for a loop, "People seem to take him at his word. “With the arrival in power of Mr Sarkozy, there’s a feeling that France is opening towards the West,†said the Franco-British Chamber of Commerce."
Isn't France part of the West now? What is the definition of the West then?
Keith, San Francisco, CA/USA
Seems something new is going on in the EU. I think France is able to dominate in the European politics and surely the close friendship with Sarko's new ally George W. Bush can help that. The Germans are really smart but the Friench have always been more innovative and they are able to produce and cultivate the new Europe for sure as Napoleon did centuries ago. Time's changing and Europe needs new waves of innovative progress both in politics and human lives. Hope Sarko won't repeat the mistakes of his great political predecessor.
Steven, Moscow, Russia
Tis lovely to see French energies once again devoted to something more worthwhile than gassing 'poststructuralist' nonsense at outdoor cafes. Europe sorely needs vigour, and the likes of Brown and Sarko are just the fellows to supply it. Ah, now if only the States had a Clinton again...
Alexander Hamilton, NYC, USA
Will France challenge German dominance of the European Union?
How can a myth be challenged?
Is the EU president a German? Have German parliamentarians the majority in the EU parliament or German secretaries in Brussel?
Gerhard Huebenett, Leidersbach, Germany
Your reporting is flawed. Sarkozy had lunch with the Bush's alone as he wife cancelled at the last minute claiming her and the children were sick...sore throats was one report. She was polite enough to call Laura and cancel, but the fact that she did not attend should have people looking a little closer at the relationship between the French and the Neocons in Washington.
I believe she cancelled because she could not stomach a day with the Bush clan, and did not want to expose her children to them.
Tim, Fredonia, Pennsylvania, USA
An American perspective:
Viva, Sarko, and down with Brown!
Mojamaiko, Porter Ranch, CA
His attempts to dilute the independence of the ECB just be strongly resisted.
Alan Heaton, Frankfurt, Germany
France believes it runs and controls the EU project - paid for by the Germans and British to keep underperforming French farmers in their jobs.
They have done a wonderful job in keeping their industries where we have thrown (or negotiated to get into EEC ) ours away - ship building, Fishing, Farming, car industry, aerospace industry, etc. etc. The only success story seemingly is the City - and that looks under peril currently. The French have always used the EEC-EC-EU ratchet for their benefit alone. Why are the Germans suddenly surprised?
The French used the EU to stand on stilts on the world stage post-war , whilst for the Germans it was seen as valuable re-branding.
Sarkozy has already bettered Brown with his rewording of the Constitutional Treaty under a different name.
The sooner Britain leaves the EU and deals direct with the Anglosphere in a global free trade agreement the better. Hopefully the Germans would join us too and leave France to its dodgy deals.
John Marshall, London,
I am an American by birth, now naturalized French. I have lived in France and worked here since 1981. This story is based on entirely faulty info provided by Sarkozy's government, and delivered through the Media, which is run in great Majority by friends of Sarkozy.
The actual situation in France is very bleak. Unemployment is not down, but large numbers of people from the baby boom are retiring. Vast numbers are also retiring early, to receive benefits they know will be reduced very soon. Anyone who falls ill for a week or more is struck from the unemployment lists and must re-apply when they recover. Since the Euro, prices for many things have risen by up to 300%! Privatization has caused gas, electricity, water, and telephone bills to double and triple in 3 or 4 years. The average young person searches 10 years before he/she manages to find a regular, full time job. And it gets worse each day. The social situation is simmering and waiting to explode.
Victor Compton, Cherbourg, France
Hmmmmm,
I think that there is nothing wrong with Sarko's desire to put France back on track after almost two decades of standsill. From Place 4 France dwindled slowly to number 5 then number 6 while GNP per capita dwindled from place 6 ( worldwide) in the 1980's to 16th.Our future lies in the EU and more precisely in a political EU BUT to achieve that scheme France needs to be strong again within its borders and that means strong economic growth, low unemployment and a thriving economy. Our natural partner is Germany and we shouldn't do anything that could hurt our partner....that's why it is necessary to work together and make both EU states the heart of the EU again...;Only then, will germany and France be able to convince the other partners...
pascal-pierre, Dinan/ France, European Union
I find it fairly unlikely that there will be a special relationship with France. Even if the President tried to, we can already see Parisian angry that he came here for his vacation. Perhaps we will just see more healthy diplomatic relations between Britain, America and France. We need to find a way to create a bond again, even without a huge enemy such as the Nazis or the USSR.
Ben Horner, United States,
Sounds like Vin Aigre - vinegar, or sour grapes to me.
Sarko’s popularity in France right now is just under 70%.Most French think taking a vacation in the US is great... many already do, and many more wish they could.
It is the American Left and the Euro-Lefties, the usual suspects, who are hoping he fails.
I like what I've seen so far. The legislation is real. The words are correct.
yitbos
It is WAY too soon for that. I'll continue to not purchase their goods until I see some REAL good behavior on their part (not just one set of election results), and the Germans STILL get to keep them next time!
On econ, it sounds better. But on foreign policy, there is a modest amount of talk, but the action says "France as usual, worse than useless".
The bar is just a little bit higher than not being quite as piggishly stupid as Chirac...
Hang loose, Angela; you and I both know how long this “burst” from france will last.
Better to have the 200 barrels of yellow cake in the hands of the frogs than sent to Iran.
yitbos
Merkel is a fish and neither left nor right. Apparently she wants to keep Turkey out of the EU but is all for continuing the negotiations. Apparently she is for a higher general self-responsibility but barely manages to reject the most outrageous leftist claims for higher welfare.
In her early days she was lauded for her silent style of governing after the Schröder years. I think that got to her head too much. She stopped leading and began moderating. Now she produces compromise after compromise. Actually she never lead and inspired the people.
That straw fire of an economic recovery Germany is currently enjoying isn’t due to any decisions she or her “conservative” CDU made. If any political actions contributed to it at all, it are those of her predecessor Schröder (Agenda 2010, Hartz IV).
Merkel is a nice, silent moderator. She would probably make a respectable diplomat. The chancellery is too large for her.
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