France's Fake Crisis Boosts the Far Right
Aug 25, 2014 8:54 AM EDT
By Leonid Bershidsky
France is reshuffling its government for the second time in 147 days because at least two leftist ministers rebelled against Prime Minister Manuel Valls's pro-business, anti-spending inclinations, such as they are. As traditional center-left and center-right politicians bicker about inefficient, half-baked fixes for real economic problems, public trust for them is at rock bottom, and the extreme right stands to gain the most.
Valls's cabinet was always a shaky creation. To counter the prime minister's reputation as something of an economic conservative within the ruling Socialist Party, President Francois Hollande packed the government with his old friends and co-workers, including his former partner Segolene Royale. He also promoted the fiery leftist Arnaud Montebourg from industry minister to economy minister, with expanded powers.
It did not take Montebourg long to rebel. In an interview with Le Monde last week, he launched a vicious attack on Germany for the "austerity policy it has imposed on all of Europe." He raged: "If we align ourselves with the most extreme orthodoxy of the German right, this will mean French people's votes have no legitimacy and alternatives do not count."
As far as Montebourg is concerned, the government should cut taxes for the middle class and forget about reducing its budget deficit to the 3 percent of output required by the European Union. As for the European Central Bank, it should start buying up government debt "to restart growth".
Montebourg had allies in the cabinet, and some were similarly outspoken. The day after Montebourg's interview, education minister Benoit Hamon backed him in Le Parisien. "Relaunching demand is a condition of success for the supply-side policy that has been pursued for the last 10 years," he said. "You can't sell anything to the French if they don't have sufficient income."
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http://www.bloombergview.com/articles/2014-08-25/france-s-fake-crisis-boosts-the-far-right
