As French Vote Nears, Sarkozy Is Haunted by Grim Economy

The New York Times ^ | January 15, 2012 | STEVEN ERLANGER

[Cincinna]

     As President Nicolas Sarkozy contemplates his race for re-election, with the first round of voting 100 days away, he is confronted with an economy reeling from the euro crisis and nearly zero growth. France has just lost its AAA credit rating and must cut government spending. The unemployment rate is 9.9 percent, a 12-year high, and rising.

The loss of the treasured AAA rating, while expected, was a blow to France’s status in Europe, making it seem less like a power than a problem. The downgrade makes it harder for France to pretend to be Germany’s equal in leading the European Union, which the French-German partnership has traditionally dominated. That, in turn, will make it harder for France, Italy and Spain to challenge the German recipe of austerity and to press harder for more liberal, pro-growth policies from the European Central Bank.

The downgrade was also a major political blow to Mr. Sarkozy and his prospects in the coming election. Polls show the main concerns of voters are clear: the size of the French debt, the cost of living, unemployment and general economic insecurity. Mr. Sarkozy’s rivals, fairly or not, leave little doubt where to place the blame.

“It is Sarkozy’s politics that have been downgraded, not France,” said François Hollande, the Socialist candidate who leads in the polls. Mr. Sarkozy’s presidency, with higher debt and higher unemployment, has been a disaster, Mr. Hollande said, but he has provided few details about his own plans.

It is hard to see how France can quickly extricate itself from its economic morass. It is Europe’s most centralized, state-dominated economy, and it is deeply invested in its opposition to what the French call the Anglo-Saxon economies of Britain and the United States, whose laissez-faire approach they blame for the 2008 financial crisis.

[Cincinna]

"While Mr. Sarkozy blames the 2008 global financial shock for France’s woes, the real problem, said Nicolas Baverez, an economist and historian, “is the unsustainable economic and social model of the last three decades.”

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[bruinbirdman]

Just what is a socialist to promise if the treasury is bare, he can't print money and the Germans are telling him to cut socialist welfare state spending?

yitbos

[deoetdoctrinae]

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[Cincinna]

And the race is on!
The Socialist, Hollande, is an ostrich with his head in the sand. The neo-fascist National Front Party candidate, Marine le Pen, blames “foreigners”

I think think the quote above “(the problem) is the unsustainable economic and social model of the last three decades” is the real answer.

The real question is, IMO, will Sarko be able to articulate a vision that places the blame where it belongs- on the bloated, broken, and broke social welfare state. No other candidate has even come close.

[elkfersupper]

It is a great pleasure for me to be alive to witness the global collapse of Socialism.

After I run out of heartbeats, provisions, capital and give-a-crap, I will feel sorry for my children and grandchildren.

[dsrtsage]

Once again we beat the french. We were downgraded waaaayyy before those slackers were.

[SunkenCiv]

Thanks Cincinna.

[Liberty Valance]

[LBG11]

Many of the French I’ve spoken with can’t stand Sarkozy (like many Americans can’t stand Obama) but think he will be re-elected regardless. Interesting and similar political climates in France and the US.