Thursday, March 27, 2014

Is France the Only "Sick Man" in Europe?

France is the 'sick man of Europe.' Well, it's fairer to say that it's France's turn to be the 'sick man of Europe,' a title no country wants. According to Reuters, the phrase seems to have originated with Tsar Nicholas I of Russia, who wrote it in reference to the Ottoman (Turkish) Empire in the mid-19th century. The Tsar said Turkey was "sick" and journalists added the "man of Europe" a century later. It has been bestowed on whichever European state has a lagging economy. In the 1970s, it was the UK, then seen as prey to militant unions, before Margaret Thatcher challenged them and won. In the 1990s, it was Germany as it struggled with the costs of reunification. Italy, with no or low growth and huge debts, has had the title occasionally over the past four years. So has Greece, as well as struggling Portugal. Now, it's France. According to Reuters France is the sick man of Europe because its manufacturing and service sectors are contracting. But in reality, France is no sicker than any other country in Europe. They all suffer from the same problems : monetary over-stimulation, over-regulation, over-taxation and a cradle-to-grave socialist mentality. This could include Greece, Spain, Portugal, Cyprus, Ireland and Italy, to name a few. But Northern Europe is not exempt. The disease simply hasn't created enough symptoms yet to be noticeable - but it will, according to Reuters. The January unemployment rate for the total EU was 12% (with France 10.9%, Germany 5%, UK 7.9%, Ireland 11.9%, Portugal 15.3%, Spain 25.8%, Greece 26.8%). Even the northern EU member countries average 7%, except for Norway, not a member of the Euro currency zone, at 3.9%. Not a picture of economic health or an argument for social calm. And in France, the number of jobless surged by 0.9% in February to a new record of 3.34 million, the labor ministry said last week. The number of new jobseekers rose by 31,500 in February, it said, admitting  there had been a "marked progression" in unemployment. ~~~~~ Here is Reuters' argument for calling France Europe's 'sick man' : "at a time when many other European economies are showing some growth, output in France's manufacturing and service sectors is contracting. Unemployment is rising, with a quarter of those under age 25 jobless....This malaise has centered media attention on the man who is implicitly held to be accountable : the Socialist President Francois Hollande. He is seen as vacillating – he scrapped a number of his initiatives when they were met with sustained protests - and out of touch. Thus, when the French far right party, the National Front, did well in the local government elections last Sunday, images of the president looking doleful were everywhere - as were pictures of a joyous Marine Le Pen, the National Front leader. Disenchantment with the EU is now sweeping France. The mainstream parties, where the official position has long been supportive of the EU and the Euro, are being challenged to be more skeptical. The liberal political philosopher Pierre Manent writes that 'life for European citizens is determined more and more not by the familiar national debate...but by the outcome of a European process that is much less comprehensible.' This simple truth - that most people are unfamiliar with and thus cannot relate to the forces that govern their lives - has been the theme that Le Pen and her comrades have hammered at mercilessly, finally catching the popular mood." ~~~~~The rise in the French jobless rate is likely to put even more pressure on President Francois  Hollande, with the overall number of jobseekers having increased by more than  420,000 since he took office in May 2012. Hollande's Socialists are struggling to jump-start France's stagnant economy  and are expected to suffer a major losses in the second round of  municipal elections this coming Sunday, which could lead to a cabinet reshuffle. The labor ministry vowed the government would "continue and intensify" its  efforts to fight unemployment after the release of the latest figures. ~~~~~ Dear readers, these unemloyment figures could not come at a worse time for France's ruling Socialist Party. President Hollande’s party took a beating in the first round on March 23rd. The Socialists took 38% of the vote, far behind the mainstream right UMP at 46%. The Socialists came humiliatingly third in several towns. The first round was won by the center-right UMP party. But the symbolic victory went to Marine Le Pen’s populist National Front (FN). The Socialists may hang on to some big cities after the second round on March 30th, including Paris, even though the UMP mayoral candidate came on first, because of a deal made early this week between the Socialists and the French Green Party. In other places, the Socialists are in an awkward spot, nowhere more so than in Marseille. The left had hoped to win, but came in third behind both the first place UMP and the FN. The National Front is not the kind of party that you would want running a liberal democratic country. The FN is an ultra-right organization that often runs afoul of French anti-Semitism laws and whose founder, Jean-Marie Le Pen, the father of Marine Le Pen, is often accused and occasionally convicted under the French anti-Semitism laws. The administrative abilities of the FN are not deep, and no one in France thinks the FN could win enough votes to become the majoriry party, but the FN might force the main parties to do some hard thinking both about France and its place in the EU. A resurgence of incisive political thought from France - a country that prides itself on its use of reason - would be good for Europe and it would give greater weight to British Prime Minister David Cameron's calls for a streanlining of the EU that rolls back unnecessary and costly EU regulations and puts more decisionmaking power back at the country level. Meanwhile, French politics may be partially renewed through challenges from the FN. While the Reuters editorial is well-thought out, it makes the fundamental mistake of proposing that only certain European countries, especially southern ones, are "sick." The truth is that all of Europe is sick, with the possible exception of Germany, which would be better off if it didn't have to carry the financial burden of keeping the rest of the EU afloat - France included.

9 comments:

  1. Answer seems clear...get rid of the EU

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    1. Is getting rid of the EU really a viable solution? Some 50 +% of the countries in the EU are there because the needed the financial help and guidance of the more stable economically European countries.

      So the EU breaks up - where do these unstable, near financially collapse countries go for help and a friendly face. Think about how as an individual you feel when your finances are just upside down. You lost your job. Your wife us expecting your first child ... And there is no one to turn too. Now transfer that to a whole country - yah!

      Were all in this together and some how we need to all get out if it together. Weather it's Europe, United States, Asia, etc.

      As the Beatles sang ..."It's a Long and Lonesome Road"

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    2. How can at least a partial economic support system that is interwind with some 35 other countries be just up and removed. Not there as it was at the close of business just yesterday? I'll tell you - IT CANT BE-PERIOD.

      If the EU would disappear ( and I'm not a big fan if the EU)... Then watch out for the rest of the world's economic structure.

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    3. Complex governmental system tend to collapse in very complex ways.

      The Roman empire was lost when the financial system ceased to be able to control the military system needed to protect and expand the Empire

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  2. I once heard a diplomat of great respected statue say " As Europe inhales, American exhales".

    If this simple statement is true then how can we Americans accept the published labor reports we see each and every Thursday. These reports are showing improvements in job creation and unemployment percentages.

    Obama's administrative people are either lying or ALL of Europe is. Can't be both ways, friends

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  3. There is not a money problem among nations today, there isn't a taxing problem - there is very serious spending problem among all nations right now. We are paying for un-needed programs, entitlements/cradle-to-grave government care is killing various nations.

    Liberal paid vacation time, outrageous maternity leave for both mother and father, medical benefits all around for married couples, same sex couples, transsexual /straight couples, sex change operations so one can be who they want to be (reverse sex changes back to who you were can't be far away). What happened to PERSONAL RESPOSIBILITY of SELF PAYMENT FOR SOME PURELY PERSONAL WANTS NOT NEEDS?

    It is not and never has been societies reasponsility to take care if everyone whimsical wants. I want a 1963 Corvette Stingray Coup with a Split Rear Window - I'm saving for that myself!

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  4. It is nearly impossible for left of center socialist (of which most are in Europe) leaders to stop their "government can do all" programs. When in essences government can only create the atmosphere for the creation of jobs by industry - government has never created a "real job" because they produce nothing that generates income, taxes, profitability, repetitive increasing receipts, or sustainability to be taxed and pay wages in reality.

    Socialism is a government of welfare and increasing indebtedness. Whereas Conservatism based government is about growth in the private sector, life style improvements, human advancement, and the freedoms that make these advancements happen.

    Socialists governments as well-meaning as they may think they are (to many), as great as it sounds to have all the "perks" of life with no concern about the monetary and human involvement cost in providing them.

    With the loop-sided number of left leaning to the radical socialists left government that are in place today some few countries have the burden of being financially solvent to carry these irresponsible thinkers. Or the responsible countries elect to sit on the side lines and watch the destruction of these "Granny State" countries.

    Government finances are nothing more than a very large (too large) household budget. If a household lives within the limits of their disposable income they can spend every dollar of that income if they choose - no matter how irresponsible that is. But they get into trouble when they spend 1 cent more constantly. Or a job is lost, or health becomes an issue. Anything out of their control and the walls come tumbling down. That is where we are right now with most governments financial systems that are tumbling ... they have out spent their ability to tax every segment of the societal and business communities at their needs anymore.

    Thomas Jefferson once said …“To take from one because it is thought that his own industry and that of his father’s has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association—the guarantee to every one of a free exercise of his industry and the fruits acquired by it.”

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  5. No nation has ever taxed or spent itself into prosperity, but in many incidences into poverty. The great enemy of freedom is the alliance of political power with wealth. This alliance destroys the state - that is, the natural wealth of localities and the local economies of household, neighborhood, and community - and so destroys democracy, of which the state is the foundation and means.

    Maybe the name “Trickle down Economy” would have been better accepted if it were called “Trickle-Up Economy” because that is the rout of a democracy’s economy. And if the free economy becomes sick (as ours is right now) then the healing process is best started at the state level. This is proven by the success of a few governors that have taken control of the state spending, healed their bottom line and are not suffering , in fact they are doing reasonably well in a near recession world/USA economy.

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  6. This is a receipt for financial collapse :

    As of March 2014, American consumers owe $11.52 trillion in debt, an increase of 1.6% from last year. The average household owes $7,115 on their credit cards and the average indebted household owes $15,252. Americans owe $8.05 trillion in mortgages and $1.08 trillion in student loan debt.

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