The Tour de France is winding its way from the flat, windswept coast of northern France down through the Loire valley and the lumpy terrain of the Massif Central. So far, it has been a time for the bulky sprinters and the puncheurs who specialise in short, maximum efforts.
French police arrested around 100 people shortly before Thursday’s labor reform protest march, according to BBC. Many French citizens remain upset over President Francois Hollande’s intention to loosen certain labor laws, such as allowing employers to fire employees when necessary, leeway in lowering wages and increasing the number of hours worked per week.
Hollande got into an office on a promise of instituting socialist policies, but later implemented pro-market measures meant to boost economic growth.
The French government wants structural reforms, but unions and most people do not. As political friction is escalating, Paris is preparing for the Euro 2016 football tournament, which is attracting terror efforts by radical right, ultra-left and the jihadists. At the same time, the country has been pummeled by ‘once-in-a-century’ flooding.
French economic growth impressed economists, who were expecting weakness alongside poor growth in America. France’s economy, however, saw a 0.6% growth in GDP in the first quarter, according to new a report by France’s National Institute of Statistics and Economic Studies (INSEE). The strong growth was partly attributed to improved trade thanks to a stronger U.S. dollar, which has made French exports more attractive to consumers at home and abroad.
In a 309-30 vote, the French parliament extended a state of emergency allowing police to detain people in their homes, among other measures, according to AFP. The latest version of the emergency declaration restricts police raids on homes, but the overall plan violates civil liberties and human rights. The state of emergency will extend until May 26.
Economy Minister Emmanuel Macron struggles to implement crucial reforms as politics stand in the way of progress, according to Reuters. Macron is wildly popular among French citizens, but his market-oriented approach remains a turn-off to Socialist party members, and he does not have enough support from President Francois Hollande to accomplish his goals. The president seeks reelection in 2017 and hopes to reform the economy before elections take place.
President Francois Hollande announced that new business-friendly policies intended to strengthen the economy. The socialist president entered office in 2012 on a campaign of taxing the wealthy to sustain growth. On New Year’s Eve, Hollande declared an economic state of emergency pertaining to slow growth and high unemployment. The president will release more details of the measures on Monday.
The second round of French regional elections is this weekend. The first round last weekend saw the National Front do best in terms of popular votes and led in six of the twelve regions. The National Front is not simply anti-austerity, but it is anti-EMU.
The attacks in Paris left a cloud of uncertainty in the air, and spending and tourism may grind to a halt, according to AFP. Before the tragedy, France announced a return to growth in the third quarter, but economic activity has slowed since Saturday.
Although France has suffered from an under-performing economy for decades, some indicators seem to hint at the nation becoming a superior economic performer in the not-too-distant future. This data runs contrary to the assumptions of many in the financial sector, particularly given the nation’s sluggish performance to date, but the evidence appears compelling.
