French Prime Minister passes Stability Program and takes his ‘café’ in Brussels this June

Manuel Valls, newly elected French Prime Minister (EC Audiovisual Services)

Manuel Valls, newly elected French Prime Minister (EC Audiovisual Services)

On Tuesday, Manuel Valls, the French prime minister presented the “Pact of Stability” in front of the French parliament. This was his first appointment with the French politics.

With a forecast of a big number of abstentions beforehand, Mr Valls attempted to soften the directive of austerity with several amendments. Moreover, last Monday he decided to increase taxes only for the pensions above 1200 euros in an act to “rationalise” the austerity cuts. In addition to that he also announced to increase the salaries of the least paid public servants.

Despite the efforts of the French political leader to make the austerity directive easier to digest, the abstentions did not miss from Palais Bourbon last Tuesday. After 30 minutes of votes, Claude Bartolone, President of French Parliament, announced that the pact of stability of 50 billion euros was approved by the French parliament with 265 votes FOR, 232 votes AGAINST and 67 abstentions. We should note here that 41 socialists chose the option ABSTAIN. Given the substantial abstention vote here, significant criticism on the power of the French elections’ result of last month was exercised.

It’s not only Manuel Valls though who is to blame for this significant abstention vote; it’s particularly Hollande’s policy. By the way, Manuel Valls knows that even inside his party he will have to negotiate hardly for each and every directive from now one. In any case, this vote was very important for the French prime minister, as it was a big test for the viability of his government.

Nevertheless, Manuel Valls was very satisfied by this result. He said : “It’s a decisive period for the recovery of the country and for the credibility of his voice”. With the result of this vote in hand the French government will avoid a conflict with European Council in June. The high number of socialists’ abstentions is expected to raise questions in Brussels about the stability of the French government. The plan that was voted describes the economic policy of France until 2017.

Standard and Poor’s

No matter if the socialists disagree with it and the French citizens don’t trust it, Standard’s and Poor’s acclaim it. The French pact of stability which has been approved by the French parliament convinced the rating agency to maintain the evaluation of the French debt at “AA” at short term and “A-1+” at long term with a stable trend.

Standard and Poor’s state: “We believe in the commitment of France regarding the reduction of the labour’s cost and enterprise taxes in order to improve the competitiveness of the economy”

The agency allegedly trusts the potential progressive reduction of the budget deficit under 3% of GDP by 2017. The cut of government expenditure will be the main drive for this achievement. However, the agency underlined that the French public debt remains quite high and it will increase until 2017. In last November 2013, Standard and Poor’s decreased the French rating from AA+ to AA, as the policies implied by Francois Hollande were not effective enough.

In spite of the ‘victory’ of the French prime minister, the main challenge is yet to come in front the European Council at the beginning of June. This will be a good crash test for the sustainability of the French economy and the debt management of the ‘Hexagone’. According to Brussels’ sources the possibility to impose sanctions against France as part of the budget discipline procedure launched in 2009, for the ineffective economic policies followed, is still significant.

The major political and historic position of France inside the European Union, though, leaves us to believe that the matter will be resolved over a ‘café au lait’ at the corridors of the Council.

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

European tourism remains a strong growth factor

Meeting of top scientists underway to slow coronavirus spread

Is a full course lunch, a new Commissioner and 2 million anti-TTIP citizens what you would call a “Fresh Start”?

Historic first, as Tolstoy’s War and Peace lands in Geneva, to mark international centenary

One in three Venezuelans not getting enough to eat, UN study finds

How to make primary healthcare a favourable career choice for medical students: strategies and reflections

Arrest of three Libyans wanted for grave crimes ‘would send strong and necessary message’ to victims, urges top Prosecutor

The South China Sea Arbitration: Illegal, Illegitimate and Invalid

Syrian Government’s ‘different understanding’ of UN role, a ‘very serious challenge’ – Special Envoy

Sea urchins are overwhelming parts of the ocean. Could turning them into sushi be the solution?

Draghi repels Trump’s threats, rejects Schauble’s dictums

The EU can afford to invest trillions in support of employment

Ambition, transformation, active citizenship: COP24 looks to next year’s big UN Climate Change Summit

‘Act now with ambition and urgency’ to tackle the world’s ‘grave climate emergency’, UN chief urges UAE meeting

UN chief outlines solutions to defeat ‘four horsemen’ threatening our global future

Earth Hour 2019: switch off your lights, and become an innovator

UN chief welcomes establishment of inclusive government in Central African Republic

In DR Congo, UN Security Council says December polls are ‘historic opportunity’ for country

EU-US relations on the dawn of the Trump era

‘Essential step’ towards universal health care made at pivotal UN conference

The European Parliament fails to really restrict the rating agencies

The remote doctor in the 21st century

Will the EU be condemned by the International Criminal Court for violating migrants’ human rights?

3 ways to make the 2020s the decade we close the gender gap

We are on the edge of a new ‘cyber’ space age. This is how we make it a success

Energy: EU priority projects should be aligned with 2050 climate objectives

Millions in Idlib ‘counting on your support to make the violence stop’, UN relief chief tells Security Council

UN chief praises Africa for keeping ‘hearts and borders open’ in refugee crisis

The untold story of who caused and who pays for the economic crisis

Von der Leyen announces Global Response and calls for united world front against coronavirus

This man swam under the East Antarctic ice sheet to highlight the impact of climate change

Take care of your borders and then expand them

High-tech or ‘high-touch’: UK survey gives clues to the jobs of the future

New Syria fighting represents ‘giant powder keg’, warns aid veteran, as he leaves UN stage

Baku forum to push back against ‘rise of hate’ with strong call for cultural and religious tolerance, says UN official

The power of trust and values in the Fourth Industrial Revolution

China’s New Normal and Its Relevance to the EU

Brazil’s hopeless future of science

Engaging women and girls in science ‘vital’ for Sustainable Development Goals

The next talent opportunity for the digital workplace? Neurodiversity

We can make sure Globalization 4.0 leaves no one behind. This is how

4 steps to developing responsible AI

What makes us happy? AI scanned 700,000 journal entries to find out

Human traffickers in Libya are posing as UN staff, says Refugee Agency

No agreement in sight on EU budget

MEPs approve new CO2 emissions limits for trucks

From drone swarms to modified E. Coli: say hello to a new wave of cyberattacks

This German supermarket’s shelves are filled with food other stores won’t sell

ACP-EU : Agreement on climate change, migration and post-Cotonou

Murder of Brazilian indigenous leader a ‘worrying symptom’ of land invasion

Top UN Syria envoy hails ‘impressive’ start to historic talks in Geneva

Golden Pen of Freedom Awarded to Murdered Saudi Journalist Jamal Khashoggi during World News Media Congress 2019

These 3 countries are global offshore wind powerhouses

Real EU unemployment rate at 10.2%+4.1%+4.7%: Eurostat Update

Brexit update: Will Theresa May’s last-minute desperate efforts procrastinate Brexit?

We need new tools for the Big Data era

How the United States is falling in love with secondhand clothes

A new bioeconomy strategy for a sustainable Europe

Independent UN rights experts call for ‘immediate investigation’ into alleged Bezos phone hack by Saudi Arabia

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s