News that François Hollande had a meeting recently with Peter Hartz, architect of Germany’s labour market reforms of a decade ago, has caused a frisson in Paris where all the talk (apart from that about his love life) is about the president’s public embrace of social democratic reforms with a distinctly German flavour.
The Elysée Palace denied reports that Mr Hartz, who led former chancellor Gerhard Schröder’s landmark reform programme, was acting as an adviser to Mr Hollande.
But it acknowledged that the president had hosted the former Volkswagen executive for an hour-long informal meeting two months ago. Read more
Here is a startling prediction from the European Commission. In the absence of comprehensive economic reforms, living standards in the eurozone, relative to the US, will be lower in 2023 than they were in the mid-1960s.
This forecast, contained in the Commission’s latest quarterly report on the euro area economy, deserves to be displayed prominently on the wall of every president and prime minister’s office in Europe.
It is a sobering prediction for two reasons. First, it contrasts starkly with the comforting tales of economic recovery and financial market stability on which Europe’s leaders are congratulating themselves in these early weeks of 2014. Second, it raises profound questions about Europe’s relative weight in the world and, in particular, about its military alliance and economic partnership with the US. Read more
François Hollande (Getty)
François Hollande’s Socialist government is desperate to get across a message, not least to foreign investors, that France’s economy is in recovery mode and that it is now set to start reducing the heavy tax burden it has heaped on companies.
This sunny prospect received a cold shower on Tuesday in the form of a survey of American businesses in France.
Although respondents saw some improvement in economic conditions over the next two years after a worse-than-anticipated 2013, only 19 per cent expected to increase employment, while 26 per cent said they would be reducing jobs.
More worrying for Mr Hollande, the survey showed a sharp slide in the perception of France as a good place to invest.
♦ The BBC visits two Goodyear-owned tyre factories in Amiens, north France, to look at how the country is getting to grips with labour reform.
♦ The nuclear stand-off with Iran can be resolved now that Hassan Rohani has been elected, writes Ayatollah Seyed Salman Safavi.
♦ Thousands of mainland Chinese have permanent residency in The Gambia – as the fastest and cheapest way for a Chinese citizen to gain right of residency in Hong Kong is to first gain permanent residency in mainland Africa’s smallest country.
♦ For the first time in human history, overweight people outnumber the underfed, and obesity is widespread in wealthy and poor nations alike.
♦ The US scrambles to save Taliban talks after an Afghan backlash. Also, take a look at the Taliban’s new Doha office.
♦ With protests continuing in Brazil, it’s a good time to take a read through our São Paulo correspondent’s feature on BBQ activists. Read more