The central bankers, past and present, who met in Paris on Friday have collectively pumped tens of trillions of dollars into financial markets and are widely applauded for staving off a global financial meltdown.
But the crowd of star monetary policy makers at the Banque de France’s conference were clearly peeved that since 2008 they have, in their own words, become the only game in town.
Over the past two week, the Bank of Japan upped its bond purchases to a staggering 15 per cent of gross domestic product a year and the European Central Bank signalled a €1tn balance sheet expansion. Yet the policy makers who helped pass those measures, which included governor Haruhiko Kuroda and members of the ECB’s governing council, played down the impact these waves of cheap cash will have on the economy. Read more
Europe’s budget wrangles
Gideon Rachman is joined by Peter Spiegel, Brussels bureau chief, and Tony Barber, Europe editor, to discuss the threat that the European Commission will reject the budgets of some of Europe’s biggest nations, in particular France and Italy. Is such a move really possible and what would be the political and economic consequences?
Speaking on television earlier this year, Manuel Valls, the French prime minister, declared that his government’s budget would not be written to “satisfy Brussels”, adding – “We are a great nation . . . France is a sovereign country.”
Sarkozy returns to frontline politics
With President François Hollande languishing at record lows in the polls, former president Nicolas Sarkozy has announced that he plans to return to frontline politics, which almost certainly means a view to running for the presidency in 2017. Gideon Rachman is joined by Hugh Carnegy, Paris bureau chief, and Tony Barber to discuss his prospects.
For the past twenty years, I’ve spent every summer in the same village in South-West France. It is a beautiful place which would be a candidate to be a World Heritage Site in many other countries – but is just another rural village in France. The village (which I won’t name, to avoid embarrassing anyone) has also always seemed blessedly immune to the world’s troubles. You could sit in the local cafe and read all about the problems in the wider economy, or political turmoil in Paris - but it all seemed rather abstract, and a long way away.
This year, however, the mood had changed. The economic, social and political problems afflicting the country seemed all too real – even in la France profonde. Read more
As François Hollande’s socialist government has taken a distinct turn to the right under Manuel Valls, his reformist prime minister, many have questioned the role of Arnaud Montebourg, champion of the left, fierce critic of globalisation and scourge of corporate bosses, both French and foreign.
Rumours have circulated in the French media that Mr Montebourg, promoted to economy minister when Mr Valls was appointed at the end of March, might soon quit the government to position himself for a potential presidential tilt in 2017 if Mr Hollande fails to recover from his current rock-bottom ratings. Read more
It’s the fashion these days for outsiders to lecture France as if it’s a talented but obstinate schoolboy failing his grades. The idea seems to be that the more you tell the French off, the faster they’ll pull their socks up. This approach is wrong. We should, instead, smother France with love.
Like anyone, the French like to hear from time to time that they are clever, beautiful, funny, kind and successful. But for the past 10 years or so, the outside world has spoken fewer nice words about France than about any developed country.
It’s reached ridiculous proportions. Anyone would think, from all these foreign sermons, that French civilisation was falling apart. This is hardly the way to get the best out of any nation, not just the French. We need to stop finding fault and start smothering France with love. Read more