Secular Café: A German view of France

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A German view of France Dec 16th 2012, 11:59 http://www.spiegel.de/international/...-a-872413.html Quote: The shift from the class struggle to a German-style social democracy, which is still something akin to heresy for the French left, amounts to a "Copernican revolution," says Finance Minister Moscovici. As if it weren't self-evident, he constantly tells his fellow party members and his voters: "Being leftist doesn't just mean distributing; it also means producing. Being leftist doesn't just mean supporting purchasing power, but also strengthening supply. And being leftist also means knowing that there is no reform policy without social dialogue." The country, which derives its national identity from the Revolution, lacks this culture of compromise and consensus, which is why France often sees chaotic and violent outbursts of protest for relatively minor reasons. The unions don't go on strike when negotiations with employers have failed, but before they have even begun -- a questionable approach to impressing one's opponent... ...Even former EADS chief Gallois, an advocate of the rapid restoration of French competitiveness, had to admit that a program like Germany's Agenda 2010 package of reforms would not be accepted in France. Nevertheless, he did not mince words in his report on the state of the French economy, noting that industry's share of economic output has declined from 18 percent in 2000 to 12.5 percent today. This puts France in 15th place among the 17 countries in the euro zone, and significantly behind Italy. The country's industrial sector has lost 2 million jobs since the Mitterand era. In 2011, France had a trade deficit of €71.2 billion ($93.1 billion), compared with a surplus of €3.5 billion in 2002. At the same time, the national debt has grown to 90 percent of the gross domestic product. "Whenever a new problem popped up in the last 25 years, our country reacted by increasing spending," says banker Michel Pébereau. Public sector spending now accounts for almost 57 percent of GDP, more than in Sweden or Germany. For every 1,000 residents, there are 90 public servants (compared with only about 50 in Germany). The public sector employs 22 percent of all workers... ...since the Socialists came to power, the country has added another 150,000 unemployed, bringing the national unemployment rate to 10.7 percent. Some 45,000 people were added to the unemployment rolls in October alone. Instead of straightening up industry, Montebourg is preoccupied with fighting redundancy programs. Only now has the government brought itself to grant companies €20 billion in tax relief to reduce labor costs. But it was a somewhat half-hearted step. Gallois considered €30 to €50 billion necessary. Last week, the government was confronted with another disastrous report, this time on the situation facing France's young people, who have been especially hard-hit by poverty and unemployment. Sociologist Olivier Galland, who headed the study, detects a feeling of bitterness and abandonment among 16- to 25-year-olds. "All of the elements are in place that could trigger yet another explosion," like the one in the late fall of 2005, when there was rioting in the outskirts of major French cities. "The system won't survive if we don't change," says Gérard Dussillol, a French expert on finance who works for a Franco-Belgian think-tank. He believes that "France, as a domino, can shake the entire system of the euro zone."

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