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How Le Pen might win a runoff against Macron

Marine Le Pen (right) has worked to detoxify the brand of the Front national, but will it be enough to form a majoritarian coalition in France? (Facebook)

Emmanuel Macron should not be such a difficult candidate to defeat in the French presidential election.

Set aside the weird personality cult that gushes over Macron’s youthful good looks, or the popular movement, En Marche! that shares the candidate’s initials (E.M.) and that translates to ‘Forward!’ — a schlocky political trick for an electorate that prides itself on sophistication.

Set aside that the 39-year-old rising star has never technically won an election to anything in his life.

Set aside the gaffes — going to Algeria and calling French colonization a ‘crime against humanity’ or criticizing the same-sex marriage law that he said ‘humiliated’ traditional Catholic voters.

Set aside the nasty rumors about his personal life or the wife 24 years his senior (and yes, they are out there).

Why Macron is far weaker than polls currently show

Though Macron is in a commanding position with a month to go until voters first go to the polls, he is the product of two of the most elite educational institutions, Sciences Po and the École nationale d’administration, and before entering politics, he was an investment banker at Rothschild. He represents a strain of neoliberal economic policy that commands lower support today than ever — the Atlantic right is moving toward economic nationalism and the Atlantic left is moving to more aggressive taxation and deeper social welfare programs.

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RELATED: After presidency, Macron would face
uphill battle for National Assembly

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Macron, for all intents and purposes, is the avatar of the French political elite, amid a global climate where voters are rejecting elites. That’s even compared to a former prime minister, François Fillon, the center-right candidate of Les Républicains, or to a former education minister Benoît Hamon, the social democratic candidate of the Parti socialiste (PS, Socialist Party).

To steal a phrase from Tyler Cowen, Macron is the ‘complacent class‘ candidate of France’s 2017 election. Continue reading How Le Pen might win a runoff against Macron

After presidency, Macron would face uphill battle for National Assembly

Emmanuel Macron might win the presidency, but he’ll face a steeper battle winning a parliamentary majority. (Charles Platiau / Reuters)

Step back from the obsession over Marine Le Pen’s economic nationalism or from the day-to-day headlines over François Fillon’s scandals and imploding campaign. 

With about six weeks to go in the French election, we know that the two established parties of the French political elite — Fillon’s center-right Les Républicains and the center-left Parti socialiste (PS, Socialist Party) of president François Hollande and its presidential nominee Benoît Hamon– are doing historically poorly.

It’s entirely possible that the Republican and Socialist candidates place third and fourth, if current polls are predictive, giving the French public for the first time a runoff without either major party. In aggregate, the two candidates poll around 33%, a massive drop from the combined first-round percentage of Hollande and Nicolas Sarkozy in 2012 (55.81%), and even lower than in 2002, when incumbent Jacques Chirac and Socialist Lionel Jospin still managed a combined total of 36.06%. (You’ll remember 2002 as the year Le Pen’s father, Jean-Marie Le Pen, made it to the runoff by edging out Jospin to second place).

If the election were held today, both of the runoff candidates would be ‘outsiders’ — the Front national leader, Marine Le Pen, and the independent Emmanuel Macron, the head of the En marche movement and a former Hollande aide and economy minister running as a centrist. Polls show that Macron holds a roughly 60%-40% edge over Le Pen in the May 7 runoff.

But that also creates a far higher level of uncertainty about the outcome of the elections that follow on June 11 and 18, when voters — fresh after selecting a new president — will also select the 577 members of the lower house of the French parliament, the Assemblée nationale (National Assembly). There’s surprisingly little coverage of those elections, though they will be just as important (maybe more) than the presidential race.

A return to cohabitation or a shift to coalition-style politics?

Prime minister Ségolène Royal? It fits Macron’s bill for an experienced leader. (Facebook)

Neither Le Pen’s Front national nor Macron’s En marche today seems to have the kind of national party infrastructure to follow a presidential victory with a parliamentary victory, though the president-elect has for the last three election cycles roared into June parliamentary elections with massive momentum. Macron has vowed that En marche will field 577 candidates for the parliamentary elections, and while he has indicated he wants to accept political refugees from mainstream parties, he also wants at least half of the movement’s candidates to have no previous political experience or affiliation.

Since 2002, each French presidential term (now five years, reduced from seven years) has lined up with the term of the National Assembly, such that the parliamentary elections follow a month after the presidential runoff. Generally speaking, since 2002, the prime minister has served as the chief parliamentary official carrying out the president’s legislative program.  Even in 2012, when Hollande narrowly edged Sarkozy in the May presidential runoff, the Socialists and their allies still wound up with nearly 58% of the seats in the National Assembly after elections a month later.

When presidential terms and parliamentary terms weren’t harmonized, it was far likelier that the presidency and the National Assembly could be controlled by different parties. In cases of divided government — cohabitation — the president’s power crumbles and the opposing prime minister sets the domestic agenda and much of the foreign policy agenda. In the Fifth Republic, France has seen only three periods of cohabitation: the Chirac premiership under the Mitterand presidency (1986-88), the Balladur premiership under the Mitterand presidency (1993-95) and the Jospin premiership under the Chirac presidency (1997-2002).

But with the Front national as strong as it’s ever been (Le Pen still leads Macron, narrowly, in the first-round polls) and with a Macron victory becoming more likely, the Republicans and Socialists will not simply give up.  To make things trickier, the Front de gauche (Left Front) will also be running candidates in the parliamentary race — presumably including its presidential contender, Jean-Luc Mélenchon, as he did in 2012.

That makes it more likely that no single party or movement will win the June parliamentary elections. Even if Macron wins the presidency in a massive landslide, he might still have to face  cohabitation or, for the first time in French political history, cobble together the kind of multi-party coalition government so much more common in the Nordics and Germany.

In the past, voters have had a good idea about who will form the government because, presumably, the prime minister and other key officials will come from the same party as the president. But Macron doesn’t have a party. So if, indeed, ‘personnel is policy,’ French voters are somewhat in the dark about what to expect under Macron. Rather unhelpfully, Macron hasn’t specified exactly who would be prime minister, or what he’s looking for in a prime minister, other than someone with experience who can command a parliamentary majority. (Well, of course…).

It may be that Macron doesn’t want to tip his hand, or it may be that Macron knows just how unsettled the June parliamentary elections will be. Per Macron, the next prime minister will not be François Bayrou, a center-right moderate and three-time presidential contender who announced he would not run this year and, instead, endorsed Macron. Earlier today, Macron mused that it would be great to appoint a female prime minister and, indeed, former Socialist presidential nominee, ecology minister Ségolène Royal, has praised Macron throughout the election (though not quite formally endorsed him). She would fit the bill.

Traditionally, France’s unique two-round system has helped the two major parties maintain their lock on power. Smaller parties and contenders are often weeded out after the first round, often setting up a direct second-round contest between the center-right and the center-left. Unlike for presidential runoffs, however, it is possible to have a three-way runoff (triangulaire) or even a four-way runoff (quadrangulaire) if the additional candidate(s) wins at least 12.5% of the vote in a given constituency.

So far, they have been surprisingly rare. Among 577 constituencies, only 44 resulted in triangulaires in 2012 (despite Marine Le Pen’s robust third-place showing in the 2012 race) and the high-water mark is 1997 with 79 triangulaires. France hasn’t seen a parliamentary quadrangulaire since 1978.

This system, in the past, has massively disadvantaged third parties. Despite Marine Le Pen’s third-place showing in the April 2012 presidential election and despite the Front national‘s 13.6% support nationwide in the first round of the June 2012 parliamentary election, the party ended up with just two seats in the National Assembly (0.35% of all seats).

In a world where the Socialists and the Republicans are struggling to win 15% or 20% of the national vote, however, you can expect a rise in the number of triangulaires or even the return of a handful of quadrangulaires. 

Buckle up for a bumpy five-way contest for the National Assembly

With the traditional French parties faltering, there’s no clarity about who will win June’s elections for 577 deputies to the National Assembly.

But that calculus changes when the Front national is winning more supporters than the Republicans, and when Macron’s En marche movement appears stronger than the Socialists and the Front de gauche. Moreover, the unprecedented nature of the election and the shifting political sands leave much of the parliamentary election in doubt (with surprisingly few polls available to guide analysis).

No one ever gave Hollande or anyone else in the Socialist camp much chance at winning in May. Barring a major upset over the next six weeks, the Socialists will also lose seats in June, in light of Hollande’s unpopularity and Hamon’s weakness. Hamon is running harder to the left than either Hollande or one-time presidential frontrunner Manuel Valls, the former prime minister. In a sense, the real winner of the Socialist primary contest was Macron, who is closer to the center-left than the center-right. To that end, leading Socialist officials are already breaking ranks by abandoning Hamon for Macron — most recently, the former Socialist mayor of Paris, Bertrand Delanoë, though Royal and finance minister Michel Sapin are very sympathetic to Macron’s candidacy. Hollande (who remains close to Macron, his former deputy chief of staff) and Valls have yet to campaign for Hamon.

As it becomes more likely that Macron will win the presidency, it’s possible that the Socialist Party will split into factions, with a core leftist wing supporting Hamon and a more centrist wing migrating to En marche. While that could benefit Macron in June by adding some experience hands to the En marche movement, it also tarnishes Macron’s avatar as an independent agent of change.

Before his campaign cratered due to the ‘fake jobs’ scandal and impending indictment for corruption and abuse of public funds, former prime minister and Republican nominee François Fillon was favored to edge out Macron and then win the runoff against Le Pen. (In hypothetical scenarios, Fillon still leads Le Pen by a margin only slightly smaller than Macron does). But as Fillon falls further into third place behind Macron (police indicate that Fillon will be notified of a formal investigation — essentially indicted — on March 15), and as leading Republicans, including his former rival Alain Juppé, abandon his campaign, the Republicans risk depressing their own turnout in June as well as in April. 

There’s still time for the Republicans to replace Fillon if the embattled prime minister drops out of the race. But Juppé on Monday, even as he slammed Fillon’s campaign as ‘at a dead end,’ ruled himself out as a Plan B. Other top Fillon surrogates, including Bruno Le Maire and many of Fillon’s campaign staff, have already abandoned him. On Monday, senior Republicans met and reaffirmed their support for Fillon, though it’s still possible for Fillon to drop out — François Baroin, a 51-year-old rising star, Troyes mayor and former finance and budget minister, who is close to Sarkozy and Fillon, now seems the most likely ‘plan B’ candidate, if it comes to that. If Fillon’s numbers drop further, however, it could lead to catastrophic losses in the parliamentary elections that, only two months ago, would have been an easy follow-up after a resounding Fillon victory. 

A new re-branding of the French left and the French right — or a new re-ordering of French politics into liberal and illiberal camps

As Fillon falters, Marine Le Pen is becoming the dominant figure of the French right — or of a new French illiberalism that mixes nationalism with economic protectionism and social conservatism. (Facebook)

It’s true that parties have been historically weak in France compared to the United Kingdom or the United States. The ‘Republican’ veneer is a 2015 rebranding of what was, during the Chirac and Sarkozy eras, the ‘Union for a Popular Movement,’ which was a successor the old Gaullist ‘Rally for the Republic,’ itself three makeovers removed from Charles de Gaulle’s ‘Rally of the French People’ that dates to the WWII Free French resistance.

The Socialist Party has had more etymological consistency, if not policy consistency. It existed as the French Section of the Workers’ International from its foundation in 1905 in the middle of France’s Third Republic through 1969, when it was just one of a handful of leftist French parties and movements that ultimately (but not completely) consolidated behind François Mitterand in the 1970s and 1980s. France’s communists remained separate, and form the nucleus of the Front de gauche today.

It’s also true that, in a narrow sense, a Macron-Le Pen runoff looks a lot like ‘left-right’ runoffs of the past — this is just another realignment of a new left and a new right as in the past. But Macron’s call for reform is closer to Sarkozy’s economic vision than that of many French Socialists today, and Le Pen’s economic protection is far out-of-sync with the business-friendly conservatism of Fillon and the Republicans.

Instead, the Macron-Le Pen runoff looks more like a contest between liberalism and illiberalism, which increasingly, more than traditional left-right differences, the central fight in developed democracies.

For now, the French political scene looks like a free-for-all — especially if Macron and Le Pen emerge as the runoff contenders. How that translates into a two-round parliamentary election in just three months’ time, however, is anyone’s guess.

Bayrou, heir to liberal-right UDF tradition, joins forces with center-left Macron

François Bayrou, giving up plans to run in what would have been his fourth attempt at the French presidency, has endorsed Emmanuel Macron. (Facebook)

In French politics, François Bayrou is always the bridesmaid — never the bride.

That was true in the 1990s, it was true in the 2000s and it now seems true in the 2010s as the longtime centrist ended his own presidential hopes for 2017 and endorsed the center-left independent candidate, Emmanuel Macron.

The 65-year-old Bayrou, who got his start in politics in the 1980s, and who has waged three earlier presidential campaigns, is forming an alliance with Macron as France turns to the first round of its presidential election on April 23, a presidential runoff on May 7 and parliamentary elections on June 11 and 18.

In stark language, Bayrou warned that his country was at ‘extreme risk’ after an election campaign that had so far ‘made a mockery of France,’ a risk that necessitates an ‘exceptional response’ — in the form of elevating the relatively inexperienced 39-year-old Macron to the presidency.

Bayrou came closest to winning the presidency himself in 2007, when he appealed to voters with doubts about both the center-right candidate, Nicolas Sarkozy, and the candidate of the center-left Parti socialiste (PS, Socialist Party), Ségolène Royal, winning nearly a fifth of the French electorate in that year. But his appeal faltered in recent years, and polls show that Bayrou would win merely 5% or 6% of the vote among an extraordinarily fluid and crowded 2017 field.

Once a rising moderate star of the French right, Bayrou served as education minister under former prime minister Édouard Balladur from 1993 to 1995 and then under Alain Juppé from 1995 to 1997. Bayrou also serves as the mayor of Pau, the capital of the Pyrénées-Atlantiques region of southwest France. Yet Bayrou never incredibly warmed to Sarkozy, and he has excoriated François Fillon, the former Sarkozy prime minister who came from behind to win the Républicain nomination (eclipsing both Sarkozy and one-time frontrunner Juppé). Fillon has been stung by accusations in recent weeks that, while in office, he funneled public funds to his wife, Penelope, and children for jobs they never actually performed.

Greater scrutiny is taking its toll on Macron

Though Macron’s popularity soared in December and January, his campaign has stalled with voters at around 20% support. With the far-right candidate of the Front national, Marine Le Pen, leading the first-round vote with around 26%, Fillon and Macron are essentially tied for second place and the all-important ticket to the May presidential runoff against Le Pen. Polls show that either Fillon or Macron today would trounce Le Pen by a nearly 60%-to-40% margin.  Continue reading Bayrou, heir to liberal-right UDF tradition, joins forces with center-left Macron

How Schäuble’s failures shape the eurozone fight

German Finance Minister Wolfgang Schaeuble attends a German-Greek chamber of industry meeting in Athens, on July 18, 2013. Local authorities stepped up security in the capital for the visit, as Schaeuble is seen by some in Greece as a champion of the tough austerity policies that have gripped the country for the past four years. AFP PHOTO / Angelos TzortzinisPhoto credit to Angelos Tzortzinis /AFP.

Though it’s Yanis Varoufakis, the Marxist economist and recently deposed Greek finance minister, who is typically painted in the media as the drag on the long-running negotiations to avoid a Greek default and keep the country within the eurozone, his intransigence has been met at every step of the way by Germany’s finance minister Wolfgang Schäuble, whose sneering impatience for Greek demands has been no less personal than Varoufakis’s over-the-top denunciations of European ministerial colleagues as ‘terrorists.’Germany Flag Icon

Schäuble’s sharp-tongued wit has been a constant through five years of negotiations that stretch back long before prime minister Alexis Tsipras and the far-left SYRIZA (Συνασπισμός Ριζοσπαστικής Αριστεράς, the Coalition of the Radical Left) took power in January. On Thursday, Schäuble joked to an increasingly concerned US treasury secretary Jack Lew that he would be willing to swap Europe’s Greece troubles for Puerto Rico’s debt crisis.

When it comes to Greece, Schäuble is in many ways Germany’s opposition leader, even though he’s a stalwart of chancellor Angela Merkel’s governing Christlich Demokratische Union Deutschlands (CDU, Christian Democratic Party). He’s made it clear throughout the course of negotiations that he favors pushing Greece out of the eurozone, a result that other European leaders worry could destroy the single currency’s credibility — not to mention plunge Greece into an even more painful depression. Back in 2011 and 2012, few German politicians — just a handful of grey-haired Bavarian conservatives — were willing to call for Greece’s eurozone exit. Today, however, it’s a mainstream position, even on the center-left.

Germany is currently governed through a ‘grand coalition’ between the center-right CDU and the Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party) that includes around 80% of the entire Bundestag, the lower house of the German parliament. Nevertheless, Merkel is limited in her maneuverability — if she gives too much to Greece, there’s a chance Schäuble could lead a revolt of CDU backbenchers who already worry Merkel has transformed the party into a political amoeba that sways to the path of political expediency.

As Tsipras and his new finance minister Euclid Tsakalotos wait for Greece’s creditors to evaluation the government’s probable last proposal for debt relief, there’s a lot that lies in Schäuble’s hands. Even as French president François Hollande has directed his entire economic leadership — prime minister Manuel Valls, finance minister Michel Sapin and economic minister Emmanuel Macron — to help save Greece’s place in the eurozone, German doubts about the deal, a three-year bailout of over €50 billion, could still derail Saturday’s deadline. A full summit of the European Union’s leaders has been scheduled for Sunday. With banks running out of money and Greece banks nearing insolvency, European leaders have made it clear that if they don’t reach a deal with Tsipras on Saturday, they will spend Sunday addressing how Greece will exit the single currency.

Germany, as the largest member-state, is the largest contribution to any stability funding that comes from the European Commission and/or the European Central Bank. It’s currently on the hook for around €90 billion of Greece’s €5320 billion public debt. Merkel, despite doubts in her own party, has supported Greece’s two bailouts in the past, though she’s done so by demanding harsh strings that satisfy her own conservative flank and, of course, German taxpayers, who are ultimately on the hook for nearly one-third of Greece’s bailout debt.

Back in 2010, with a nod to moral hazard, Merkel cruelly told then-prime minister George Papandreou that she had to make the bailout as difficult as possible:

Mr. Papandreou says that when he asked German Chancellor Angela Merkel for gentler conditions in 2010, she replied that the aid program had to hurt. “We want to make sure nobody else will want this,” Ms. Merkel told him.

In principle, it was Merkel’s nod toward moral hazard — she couldn’t give the Greeks terms that Spain, Italy, Ireland, Portugal or the Baltic states might soon want. But in practice, it was a sop to the German right, which was growing ever more disgusted at consecutive Greek governments, which haven’t had the strongest reform record.

But Schäuble makes Merkel look relatively welcoming. The 72-year-old finance minister, according to reports, apparently asked Greek negotiators how much money it would take to get them to leave the eurozone. Continue reading How Schäuble’s failures shape the eurozone fight

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

RELATED: Valls-Montebourg fissure could bring early French elections

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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. 

Valls-Montebourg fissure could bring early French elections

arnaud

It was always a stretch to believe that there was enough room in France’s government for both Arnaud Montebourg and Manuel Valls.France Flag Icon

Montebourg, who represents the unapologetically socialist wing of France’s Parti socialiste (PS, Socialist Party), received a promotion in April as economy minister when French president François Hollande reshuffled his cabinet and replaced former prime minister Jean-Marc Ayrault with Valls. At the time, it was hardly clear that Montebourg deserved it after picking fights with prominent foreign businessmen in both the United States and India and waging an avowedly protectionist ‘Made in France’ campaign while serving as minister for industrial renewal. Montebourg (pictured above), with a charming grin, trim figure and a wavy swath of dark hair, who last weekend shared a photo of Loire Valley red wine on his Facebook feed, fits neatly into the American stereotype of the preening, tiresome, French socialist.

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

RELATEDSapin, Royal, Montebourg headline new French cabinet

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Valls, meanwhile, is leading Hollande’s government at a time when the Socialist administration is turning even more to the center, with a much-heraled (if hokey) ‘Responsibility Pact’ that aims to cajole French businesses into hiring a half-million new workers with the promise of a €40 billion payroll tax cut, financed by an even greater €50 billion in spending cuts. Though he’s regularly touted as a reformer, it’s more accurate to say that the Spanish-born Valls is a tough-minded ‘third way’ centrist who wants to rename the Socialist Party, which he considers too leftist. As interior minister, he showed he could be just as tough on immigration and crime as former conservative president Nicolas Sarkozy. When he became as prime minister in late March, Valls had the highest approval rating by far of any cabinet member. Today, his approval is sinking fast — an IFOP poll last weekend gave Hollande a 17% approval rating and Valls just 36% approval.

But Valls always had the support of Hollande and allies like finance minister Michael Sapin, and it was clear even in the spring that  Montebourg was destined to become more isolated than ever in the Valls era.

It took less than five months for the cabinet to rupture.  Montebourg publicly challenged Hollande over the weekend to rethink his economic policy in light of new data that show France’s economy remains stagnant — growing by just 0.1% in the last quarter, far below Hollande’s already-anemic target of 1%. Montebourg has also criticized Germany for encouraging austerity policies throughout the eurozone that he and other left-wing European politicians and economists blame for weakening the continent’s economic growth since the 2008-09 financial crisis.

In response, Valls orchestrating a dramatic resignation on Monday morning, though Hollande has given him a mandate to form a new government that won’t include Montebourg or allies like education minister Benoît Hamon and culture minister Aurelie Filippetti.

The drama surrounding this week’s reshuffle is hardly welcome so soon after Valls’s initial appointment, and Hollande risks a wider revolt on the French left that could endanger his agenda in the Assemblée nationale (National Assembly), where Socialist rebels could join legislators from the center-right Union pour un mouvement populaire (UMP, Union for a popular movement) in opposition to his agenda. Valls will introduce the 2015 budget in the autumn, and if he fails to pass it later this year, his government could fall and Hollande might be forced to call snap elections that the Socialists would almost certainly lose. Continue reading Valls-Montebourg fissure could bring early French elections

Sapin, Royal, Montebourg headline new French cabinet

Michel Sapin

Though French president François Hollande on Monday promised a gouvernement de combat in his cabinet reshuffle, it looks like the government he’s chosen might wind up spending more time combatting one another that the myriad economic challenges that France faces.
France Flag Icon

Just 48 hours after naming interior minister Manuel Valls, the hard-charging, Roma-busting strongman of the Parti socialiste (PS, Socialist Party) as France’s new prime minister, Hollande announced the rest of his cabinet reshuffle today.

Though the return of Ségolène Royal, Hollande’s partner of three decades and the 2007 Socialist Party’s presidential candidate, is sure to top most headlines, the heart of the cabinet reshuffle are Hollande’s schizophrenic choices for finance minister, Michel Sapin (pictured above), and economy minister, Arnaud Montebourg.

At first glance, Hollande’s new slimmed-down cabinet (16 ministers instead of 20) seems like a kind of ‘team of rivals,’ given that Valls, Montebourg and Royal all campaigned for the Socialist Party’s 2012 presidential nomination — the only major rival not to hold a post in the new government is Martine Aubry, a longtime champion of the party’s left wing and the former minister who introduced France’s 35-hour workweek (a policy that Valls stridently opposes).

But it’s hardly Lincolnesque.

Sapin and Royal are assuming roles they first held 22 years ago, while Montebourg is a leftist whose views are at extreme odds with the economic policy that Hollande and Valls are expected to pursue over the next three years.  Continue reading Sapin, Royal, Montebourg headline new French cabinet

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

 

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.

From Aubry to Ayrault: who will Hollande choose as France’s next prime minister?

With François Hollande’s election on Sunday as the next president of France, the next big decision point will be the president-elect’s appointment of a candidate for prime minister.

The designee will take a primary role in the upcoming June 10 and June 17 parliamentary elections and if, as is traditional, the winning presidential candidate’s party wins those elections with a majority in the Assemblée nationale, Hollande’s designee will become the head of government.

Outgoing president Nicolas Sarkozy’s center-right Gaullist Union pour un mouvement populaire, together with affiliated groups, together hold 345 seats in the current legislature, to just 227 for the left, including just 186 seats for Hollande’s Parti socialiste.  While it is typical in France for the winning presidential candidate’s party to win the election, which comes less than a month after Hollande’s decisive victory in the presidential election, Marine Le Pen’s Front national — which won almost 19% of the vote in the first round of the presidential election — will be running very hard to win seats as well, especially given the aimless state of the now-decapitated UMP, which will be somewhat driftless without Sarkozy’s leadership.

Under France’s two-round parliamentary election system, a candidate wins over 50% of the vote in the first round (and at least 25% support of all registered voters in a precinct), he or she is elected.  If not, each candidate with over 12.5% support of all registered voters (or, alternatively, the top two vote-winners if no two candidates have received 12.5%) advances to the second round, where the candidate with the most votes is elected to parliament.

As such, Hollande’s choice will be the first important signal that he provides to France, to Germany, to the rest of Europe and to the debt market as to the direction he hopes to take the French government over the next five years.

With 2002 presidential candidate Ségolène Royal — Hollande’s former partner and the mother of his children — tipped to become the president of the Assemblée nationale if the PS wins the June election, and with one-time presidential frontrunner and former IMF chief Dominique Strauss-Kahn battling legal accusations on both sides of the Atlantic, two main candidates have emerged in the media since Hollande’s election — Martine Aubry, Hollande’s rival for the PS presidential nomination and first secretary of the PS, and Jean-Marc Ayrault, president of the PS parliamentary group in the Assemblée nationale.  In addition, former prime minister Laurent Fabius, Hollande campaign manager Pierre Moscovici, former Civil Service minister Michel Sapin and campaign communications chief Manuel Valls have also been mentioned as potential prime ministers.

So who are these potential prime ministers, how would they be received and how likely are their appointments? Continue reading From Aubry to Ayrault: who will Hollande choose as France’s next prime minister?