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France

Who is Manuel Valls? Meet France’s new prime minister

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In choosing Manuel Valls, the popular interior minister, as France’s new prime minister, French president François Hollande is taking a risk that elevating the most popular minister in his government will attract support from among the wider French electorate without alienating the leftist core of the Parti socialiste (PS, Socialist Party).France Flag Icon

Pivoting off the poor Socialist showing in last weekend’s nationwide municipal elections, Hollande’s cabinet reshuffle is a sign that he understands he has largely lost the trust of the French electorate in less than two years. Other ministers, including finance minister Pierre Moscovici, could also lose their jobs in a reshuffle to be announced later this week.

Prime minister Jean-Marc Ayrault resigned today after just 22 months on the job. LIke Hollande, Ayrault has become increasingly unpopular as the government has pursued aggressive measures to stabilize France’s budget, including tax increases and adjustments and cuts to France’s pension system — all in the face of a sluggish economy, a 10.8% unemployment rate and a greater crisis in confidence over France’s role within the European Union and the world. 

In a short statement announcing Valls, Hollande pledged to continue pursing a payroll tax cut and additional pension and labor law reforms as part of a recent attempt to win support from the French business community, a series of reforms that Valls has enthusiastically promoted throughout his career. He also promised that Valls would lead a ‘combative government,’ which sounds like somewhat of an understatement in translation from a gouvernement de combat.

In light of Ayrault’s highly collaborative style, and Valls’s much more aggressive style, even the original French seems like an understatement.

But while the latest IFOP poll from mid-March gave Hollande a 23% approval rating (his highest, in fact, since last October) and Ayrault a 26% approval rating, Valls has an approval rating of 63%. That goes a long way in explaining why Hollande is replacing Ayrault with Valls today.

It’s not a choice without risks. Valls, a centrist with controversial views about the Roma and immigration, could divide the French left. If Hollande’s unpopularity continues, he could taint one of the few remaining popular figures within the Socialist Party. If Valls succeeds, he could supplant Hollande as the more attractive presidential candidate in 2017.

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Comparative Politics, European Union, United States

Trade blocs form the new borders of the 21st century global order

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The most underreported aspect of the current crisis over the Crimea annexation is the extent to which Russia was willing to go to the brink of international crisis for the goal of a future trade bloc. USflagEuropean_Union

Why does Russian president Vladimir Putin care so much about the vaunted Eurasian Union, even though it’s a rewarmed version of the existing economic customs union among  Russia, Belarus and Kazakhstan?

To turn Michael Corleone’s words on their head, ‘it’s personal, not business.’

Putin hoped that the revamped union could attract a few more stragglers in central Asia, Azerbaijan or Armenia and perhaps Ukraine — until February 22.

There are certainly potential gains from greater free trade, and negotiating multilateral trade blocs seems both more efficient than one-off bilateral agreements and more productive than pushing for greater global integration through the World Trade Organization (WTO) process.

Also unlike bilateral treaties or WTO-based agreements, regional trading blocs are also emerging as strategic geopolitical vehicles for advances regional agendas that have just as much to do with politics as with trade.

Ultimately, it’s same reason that the two South American customs unions, the Mercado Común del Sur (MERCOSUR, Suthern Common Market) and the Comunidad Andina (CAN, Andean Community) joined to form the even larger Unión de Naciones Suramericanas (UNASUR, Union of South American Nations), which came into existence in 2008 and covers the entire South American region.

It’s the same reason that Kenyan president Uhuru Kenyatta has put so much pressure on Tanzania to choose between the East African Community (EAC) or the Southern African Development Community (SADC) over the past year by accelerating plans for greater political cooperation within the EAC — with or without Tanzania. Or why admitting South Sudan into the EAC back in 2011 could have helped prevent its slide into civil war.

It’s the same reason that defining ‘Europe’ has been such a  strategic and existential issue for the European Union and its predecessor, the European Economic Community, since its inception. Does the United Kingdom belong? (In the 1960s, according to French president Charles de Gaulle, it didn’t). How to handle Turkey? (Enter into a customs union with it, then slow-roll accession talks since 1999, apparently). Should Ukraine join? Moldova? Georgia? If Azerbaijan can win the Eurovision contest, why not bring it into the single market? What about, one day, Morocco and Tunisia, which both have association agreements with the European Union?

That’s why it’s worth paying close attention to the Trans-Pacific Partnership (TPP), but also the Transatlantic Trade and Investment Partnership (TTIP). TTIP would create a super-free-trade-zone between the United States and the European Union, which together generate between 45% and 60% of global trade.

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