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Sarko’s defeat is great news for French (and global) moderates

Nicolas Sarkozy's hopes for a comeback crashed to a halt Sunday evening with a third-place finish in France's conservative presidential primary. (Facebook)
Nicolas Sarkozy’s hopes for a comeback crashed to a halt Sunday evening with a third-place finish in France’s conservative presidential primary. (Facebook)

The sound that you heard Sunday evening?France Flag Icon

A sign of relief across the liberal democratic world that former French president Nicolas Sarkozy sank to third place in the presidential primary of the center-right Les Républicains (the Republicans), the successor to the party that Sarkozy once led and that he helped to rechristen and remake over the last two years.

Instead, his former prime minister, François Fillon, a social conservative who promises Thatcher-style reforms to the French economy, and his former foreign minister (and long-ago Chirac prime minister) Alain Juppé, who has promised a far more moderate approach to governance than either Sarkozy or Fillon, will head to a runoff next Sunday, November 27.

But with Fillon’s dramatic first-place finish, following a week-long reversal in the polls for both Sarkozy and one-time frontrunner Juppé, and with Sarkozy’s quick endorsement of Fillon’s candidacy, Juppé appears to have a limited path to victory next week.

Fillon may or may not prove a stronger candidate than Juppé. But he most certainly will be stronger than Sarkozy.

republicain2016

No matter what you thought of his presidency, Sarkozy’s defeat is good news for everyone on the right, middle and left who hopes to prevent Marine Le Pen, the leader of the anti-immigrant and eurosceptic Front national (National Front) from winning the presidency in May 2017. France chooses a president in two rounds — the two individuals with the most votes in a first-round April vote advance to a May runoff. Polls show today that Le Pen would almost certainly win one of those two runoff spots.

Sarkozy, more than Juppé or Fillon, was willing to run in 2017 (much as he did in 2007) by co-opting the language, if not the outright policies, of the far right. On immigration and crime, in particular, Sarkozy telescoped that he would compete with Le Pen primarily on her own turf. For many French voters who find Le Pen’s views on immigration, Islam, and the European Union repugnant, Sarkozy would have reinforced and normalized those views, pulling Le Pen closer to the heart of France’s political debate.

In 2007, Sarkozy effectively sidelined Le Pen by co-opting her rhetoric. That, in retrospect, only empowered Le Pen and her movement. In 2017, Le Pen will prove a far greater threat. French voters have now rejected Sarkozy (in 2012), and his leftist rival François Hollande, featuring approval ratings as low as 4%, faces a quixotic hope for reelection. With the French electorate so unhappy with the status quo, and after the shocking victories for Brexit in the United Kingdom and for Donald Trump in the United States, Le Pen must now be taken seriously as a threat to win the Élysée Palace next spring.

Even as Sarkozy’s nomination would have emboldened Le Pen and the illiberal, populist right, he would have simultaneously embodied everything that many French voters despise — the ostentatious ‘bling-bling’ nature of his presidency, the drama of his whirlwind romance with Carla Bruni, the attempts at neoliberal reform that voters have come to blame for inequality and stagnation. Even worse, Sarkozy would have gone into the 2017 elections under a legal and ethical cloud that aggregates several lawsuits and scandals, not least of which the notion that he received political funding from Libya’s Muammar Gaddafi in his 2007 election.

With the French left in tatters after Hollande’s disastrous and ineffective presidency, and with several figures on the left likely to compete for votes in the first round, Sarkozy might well have ended up as Le Pen’s challenger in the runoff, where he would have been an easy foil for Le Pen as the compromised avatar of a failed French political establishment — just as Trump so effectively demolished the scions of the American political establishment in Jeb Bush and Hillary Clinton.

It’s true that Juppé and Fillon both carry baggage as figures associated with the French political establishment. So, too, will Emmanuel Macron, a former Hollande economy minister who announced earlier this month that he will stand as an independent in the presidential election (and who might eventually outpace Fillon to the runoff). So, too, will Hollande or the eventual nominee of Hollande’s leftist Parti socialist(PS, Socialist Party).

But Sarkozy would have personified the worst of the French political establishment while also giving political cover to the National Front’s far-right views on politics and policy. Fillon, Juppé, Macron and the eventual Socialist nominee (likelier than not the brash, Spanish-born centrist prime minister Manuel Valls) will all certainly talk tougher about immigration and security in 2017, given the traumatic Charlie Hebdo, Bataclan and Nice terrorist attacks. None of them, however, seem poised to parrot the Le Pen line on immigration or on France’s Muslims to the extent Sarkozy was willing.

The Le Pen threat, now much more tangible than it was before Trump’s election two weeks ago, is still a serious one. But classic economic liberals and social liberals, on both the right and the left, should be relieved that they will not have to rally around such a clearly flawed candidate as Sarkozy at a time when Le Pen’s support is cresting.

The last, best hope for global economic liberalism? Look to France.

Alain Juppé could be the last man (or woman) standing on the UN Security Council in defense of liberalism. (Facebook)
Alain Juppé could be the last man (or woman) standing on the UN Security Council in defense of liberalism. (Facebook)

Imagine the following lineup of the leaders of the UN Security Council: France Flag Icon

Russian president Vladimir Putin.
Chinese president Xi Jinping.
American president Donald Trump.
British prime minister Theresa May.
French president Marine Le Pen.

In a matter of months, we may wind up in a world where every leader of the Security Council is illiberal and nationalist.

That was unthinkable four months ago — and it should shock all of us who believe in free markets, mutually beneficial trade and sensible reforms to safeguard those displaced by trade. Continue reading The last, best hope for global economic liberalism? Look to France.

Macron, France’s new economy minister, angers French left

Emmanuel Macron

One day after French prime minister Manuel Valls resigned, forcing French president François Hollande to invite Valls to form a new government, it’s not clear that the new cabinet is going to quell a growing revolt on Hollande’s left flank.France Flag Icon

Valls, less than five months into his tenure, took the dramatic step Monday after weekend comments from former economy minister Arnaud Montebourg criticizing his own government’s austerity measures that have aimed to reduced French debt and cut payroll taxes, in part, through spending cuts.

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Montebourg, along with allies like education minister Benôit Hamon, a rising star of the French left, and culture minister Aurélie Filippetti, were banished from the second Valls government, replaced by relatively minor figures deemed more loyal to Valls and Hollande.

Though everyone else in the government remained in government, from foreign minister Laurent Fabius to finance minister Michael Sapin to ecology and energy minister Ségolène Royal, Montebourg was replaced by the Hollande loyalist Emmanuel Macron, a 36-year-old ex-banker and graduate of France’s elite-producing school, the École nationale d’administration.

Macron’s appointment sends a message about the orthodox program of the next government, and it wasn’t particularly subtle. Le Monde called him the ‘liberal sauce’ of the government, and Le Figaro called him the ‘anti-Montebourg.’

After his graduation from ENA, Macron (pictured above) worked as a finance official in the French government for four years, then worked for four years for Rothschild in the private sector. When Hollande was elected, he became one of the new president’s top Elysée aides as deputy secretary general of the presidency, where he once exclaimed that Hollande’s push to institute a 75% income tax rate for millionaires made France equivalent to ‘Cuba, but without the sun.’

The Valls-Sapin-Macron axis in the new French government will assure the French business and investor class that Hollande is serious about a proposed €40 billion payroll tax cut and continued devotion to budget discipline, to the growing outrage of the French left.  

The best thing the left wing of Hollande’s Parti socialiste (PS, Socialist Party) can say about the new cabinet is that Valls, at least, retained Christiane Taubira, a legislator from French Guiana who has served as minister of justice from the outset of the Hollande presidency, who pushed through perhaps the Hollande administration’s crowning social policy achievement in legalizing same-sex marriage last year, and who has often clashed brutally, if privately, with Valls, both as prime minister and when he previously served as interior minister, on economic policy as well as on her proposed prison reforms that would relax criminal penalties and eliminate mandatory sentencing for convicts.

There were other choices. Hollande and Valls might have convinced Martine Aubry, the runner-up to Hollande in the 2011 presidential contest and the author, as minister of social affairs in 2000, of the 35-hour workweek. After Montebourg, who routinely lambasted German chancellor Angela Merkel’s fiscal policy, told Indian steelmaker Lakshmi Mittal he wasn’t welcome to invest in France and who picked a fight with American tire producer Morry Taylor, Aubry’s presence in the cabinet might have been a win-win situation — replacing the mercurial Montebourg with a pillar of the French left.

Instead, Macron’s elevation is sure to accentuate the growing rift between the centrist and leftist wings of the Socialist Party, which could cause the government to fall later this year over the 2015 budget. That, in turn, could cause snap elections that the Socialists might lose altogether, ushering in another era of cohabitation, or divided government, with Hollande’s approval rating hovering between 17% and 20%. 

At the very least, the events of the last 48 hours potentially places Hollande in a difficult position — if Montebourg and the leftist rebels are strong enough, they can force Hollande and Valls either to accept their demands for a more growth-oriented budget this autumn or face a no-confidence vote. 

Amid high unemployment and a growth rate of just 0.1% in the last quarter, Hollande has struggled to implement policies to jumpstart GDP growth and economic activity. That’s left him open to criticism on the right and the left, including Montebourg, who on Saturday castigated Hollande’s administration for being held captive to Berlin — the last straw among the increasingly strident critiques from within his own government.