Daily Archives: May 16, 2012

France

Hollande fills out his cabinet: Moscovici, Fabius, Valls and Taubira take top jobs

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After announcing Jean-Marc Ayrault as his prime minister yesterday, newly inaugurated president François Hollande announced the rest of his cabinet today.

Laurent Fabius’s appointment as foreign minister was expected, even though he campaigned against the European Union constitution in 2005.  Fabius (above, center) is a grandee of the Parti socialiste, having served as prime minister from 1984 to 1986 during the Mitterand administration, and later as finance minister from 2000 to 2002 under former prime minister Lionel Jospin.

Martine Aubry, a leftist firebrand who had been seen as a contender for prime minister and the runner-up to Hollande in the presidential nomination race, will not take part at all in the cabinet, which is mildly surprising.  She had been allegedly offered and rejected a “super ministry” role from Hollande.

Nor will Ségolène Royal, Hollande’s one-time partner of four decades and former presidential candidate, which is not surprising, as it is rumored that she will be appointed president of the Assemblée nationale if the Parti socialiste wins June parliamentary elections.

The biggest surprise, perhaps, is the appointment of Pierre Moscovici as finance minister.  Hollande’s campaign manager and former minister for European Affairs from 1997 to 2002, Moscovici (above, top) was close to former IMF managing director Dominique Strauss-Kahn.  His European experience will guide him well, as the ongoing eurozone sovereign debt crisis stands to be the French economy’s largest immediate challenge for Hollande’s government.

Michel Sapin, another chief economic adviser to Hollande, had been tipped for finance minister, but will instead serve as labor minister.  The fiscally conservative Sapin served as finance minister from 1992 to 1993 during the Mitterand administration and as the minister of Civil Servants and Sate Reforms from 2000 to 2002.

As expected, Manuel Valls, an up-and-coming MP, who served as the Hollande campaign’s communications chief and who comes from the more pro-market wing of the PS, was named interior minister.  Nicolas Sarkozy used the interior ministry as a stepping stone in the mid 2000s to launch his successful 2007 campaign.

Former 2002 presidential candidate and the South America-born Christiane Taubira (above, bottom), who is currently an MP for French Guiana, will serve as minister of justice as the highest-ranking woman in a cabinet that will achieve gender parity.  Taubira is not a member of the PS, but rather the founder of the French Guiana-based Walwari party and a bit of a “free electron” in French politics.

Nicole Bricq, a member of France’s Senate and another ally of Strauss-Kahn, will serve as minister of the environment.

Le Monde has a full infographic of the new cabinet here and full bios here.

European Union, Greece

Worries about Greece’s immediate eurozone exit are extremely overblown

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Earlier this week, as the chances of a pro-bailout Greek coalition fell apart, you would think that the failure to cobble together a coalition was tantamount to Greece withdrawing from the euro and reintroducing the drachma.

Sure enough, signs of a “bank jog” emerged this week, as Greeks pulled out over €1.2 billion in deposits from Greek banks on Monday and Tuesday amid the political tumult.  An article in Der Spiegel declared that it is time for Greece to leave the euro and even Christine Lagarde, managing director of the International Monetary Fund said that, although it would be “quite messy,” it is time to start thinking about how to engineer a Greek exit from the euro.

But with an interim caretaker prime minister, Panagiotis Pikrammenos, being sworn in today, and new elections scheduled for just over a month from today, the warnings of Greece’s immediate exit from the eurozone are extremely overblown. Continue reading Worries about Greece’s immediate eurozone exit are extremely overblown →

Ireland

Pro-referendum forces maintain momentum in Ireland

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For me, one of the key questions about the recent French and Greek elections has been how those results would play in Ireland — would a firm anti-austerity wave across the continent make Irish voters more or less likely, in the upcoming May 31 referendum, to endorse the December fiscal compact agreed among all of the European Union members (except the United Kingdom and the Czech Republic)?

Surprisingly, perhaps, given the increasingly cynical response of Irish voters in these EU treaty referenda, the “Yes” vote camp still seems to be maintaining (or even strengthening) its lead over the “No” vote.  The latest poll shows 53% in favor of the treaty (an increase of 6% over the prior poll), with only 31% opposed.

The momentum comes even as German chancellor Angela Merkel finds herself increasingly on the defense against an emergent pro-growth (and anti-austerity) wing from both the periphery — e.g. Greece — and the heart — e.g. France, North Rhine-Westphalia — of the EU.

Say what you will about the current Eurocrisis, it is fascinating to watch the increasingly interlinked politics among the EU member states.  For the first time in EU history, notwithstanding decades of (politically meaningless?) European parliamentary elections, a bona fide European politics has emerged in the austerity/growth debate.  It transcends the traditional right/left axis of national politics and the very existential debate of federalism vs. intergovernmentalism.

Yesterday, Irish finance minister Michael Noonan argued that supporting the fiscal compact would send a message to the EU that Ireland is serious:

Mr Noonan said adopting the treaty will send a signal out to Europe that the Irish are serious, committed people, and committed to the repair job required for the economy.

If we vote No, he said, Europe will move on and we will be left with less than full membership of the eurozone.

To laughter from the audience at an economic summit organised by Bloomberg in Dublin this morning, Mr Noonan said he does not want Ireland to be a pavilion member of the eurozone “where you are allowed drink in the bar, but not play the course”. Continue reading Pro-referendum forces maintain momentum in Ireland →