France: what to make of Bayrou's austerity package?
With its national debt at record levels, the "moment of truth" has come for France. Under this motto, Prime Minister François Bayrou has unveiled a budget proposal that involves billions in cuts. In addition to merging authorities and freezing public spending, including pension payments and social benefits, two public holidays would also be scrapped. Europe's press turns its attention to Paris.
At least we know what's what now
Bayrou's proposal has at least gone a long way towards clarifying the situation, L'Opinion believes:
“If adopted, the plan will be in effect for several years, until our debt, which is out of control today, is stabilised (and only stabilised!). ... There is no guarantee that this mood of doom and gloom will be enough to convince the public that the time has come to make sacrifices, or that the Socialists or the Rassemblement National, which are keeping the government on a tight leash, will be swayed. But whatever the outcome of this debate, at least some progress will have been made in educating people about the real state of the country, which is so heavily indebted and unproductive.”
Disastrously one-sided
L'Humanité makes the case for more cutbacks in corporate subsidies:
“Trillions of euros have been spent with no economic impact to speak of. So are we now starting from scratch? No, they're just trimming back a few of the most scandalous subsidies. However, entrepreneurs can rest assured that they will get more relaxed labour laws in exchange. The missing billions could also be found in the area of tax evasion: 80 to 120 billion euros per year, in fact. Or among the 500 richest French individuals, whose wealth has increased fourteen-fold over the past three decades. A gold mine filled with 1,128 billion. Meanwhile, the life expectancy in good health is diminishing. ... The drive to satisfy the demands of lobbyists is poisoning our environment, our food and our bodies.”
Reforms put off for too long
El Mundo highlights the benefits of the austerity policies imposed in southern Europe:
“The reality for France is that if it continues as before, without the means to boost its economy in today's highly competitive world, the problems will only get worse. ... The French experience raises the question of how such an important country could have got to where it is today. ... The lesson is that the Republic has postponed the necessary structural reforms for too long. But we should remember that if Spain - like Greece and Portugal - is not in such a critical position today, it is not because our country made better decisions, but because it was forced to make tough adjustments due to the financial crisis.”
Struggling to leave with his head held high
Bayrou's main goal is to not lose face, writes the Tages-Anzeiger:
“The French must work more, said Bayrou. Which is why he is planning to scrap two public holidays. ... Now everyone is talking only about the public holidays. If two were cancelled, France would only have nine, which is below the European average. ... It's quite possible that this story about public holidays is just a decoy, a diversionary manoeuvre. Bayrou can withdraw the measure in the course of the debate and claim that he's tried everything, that he's fought for the steadfastness of the state - and then depart with dignity. It is unlikely that he will survive this unprecedented austerity budget politically. The prime minister lacks a majority in parliament.”
Party less, produce more
Scrapping public holidays is a good idea, says The Daily Telegraph:
“Are public holidays really necessary, when productivity is persistently low and public debt is at an all-time high? In fact the loss of two national holidays would still leave the French population with nine days of religious or secular commemoration. That would bring them in line with Scotland, which has nine Bank Holidays, one more than in England, which currently has eight. But perhaps it's time for the UK to reconsider all these national holidays. Our debt level is dangerously close to 100 per cent of GDP (in France it's 110 per cent) and we too have a serious productivity problem.”