Early statements by François Hollande. Now that the French have made their choice, European issues can resume their place. In the very final stages of the electoral campaign, both Mr Hollande and Mr Sarkozy rather ignored Europe, at most firing criticism its way. The emphasis was laid firmly on domestic matters, and that is very understandable. François Hollande had, in fact, however, made a careful analysis of European issues and for the most part determined his positions. He had set out in advance where he stood on some issues, so that those concerned or affected might know. Some of his stances were even picked up by foreign press. I have brought together this information with the aim of providing our readers with an overview just as the new President of the Republic is elected (I would have done the same if the French had voted in Mr Sarkozy).
Mr Hollande announced as early as 26 April that, were he to be elected, he would send a memo to his European partners in which he would set out the initiatives he felt were necessary to boost the economy and get it working again, mentioning eurobonds, using the EIB to finance infrastructure projects, re-allocation of unused structural funds from the Community budget, a financial transaction tax (see EUROPE 10604) - all objectives already under discussion in Brussels. Mr Hollande added his intention to set 2017 (rather than 2016) as the deadline for bringing France back into budgetary balance.
Here is an outline of what Mr Hollande said later.
(a) Addendum to the European treaty on budgetary discipline. According to the Süddeutsche Zeitung, following a series of meetings between Mr Hollande's aides and German diplomats, there was a possibility of a compromise: France would not call for a review of the said treaty but a statement, or similar text, on economic growth would be put to the European Council. The principle of reduction of debt reduction going hand-in-hand with stimulation of the economy being accepted by all, it remains only to draft the text to be submitted to heads of state and government at the end of May or start of June. In the meantime, ratification of the “discipline” treaty goes ahead in member states, until it comes into force.
(b) European monetary system. Mr Hollande told the weekly Nouvel Observateur: “In my view, it is essential that the European Stability Mechanism (ESM) should be guaranteed by the European Central Bank (ECB). It would then have virtually unlimited resources and could grant low-interest loans without there being any concern over the ECB's being unable to lend directly to states. As we can see, there are options. They make sense.”
(c) Banks: financing the economy and speculation. When asked about separating banks' speculative activities from activities which finance the economy, Mr Hollande replied: “The reform I am proposing does not seek to weaken the banking system but to strengthen it. I intend to make money once again serve the real economy and innovation. That is the direction banking reform will take. Companies will be able to benefit from better use being made of French people's savings for investment.” (The United Kingdom and the banks concerned oppose separation.)
(d) Remuneration. Mr Hollande has said: “I was appalled to learn that, in 2010, top bankers had granted themselves remuneration of up to €5 million. In times of crisis, that is unacceptable, especially as often these same people ask their employees to show wage restraint.” Mr Hollande said that he would also reduce the salary of the head of state by 30% and ensure that, in the public sector, the highest paid could receive no more than 20 times the salary of the lowest paid.
Radical revision of relations with the Mediterranean countries. To my knowledge, Mr Hollande has made no personal comment on this. However, Elisabeth Guigou, who is likely to be in charge of relations with the Mediterranean countries, gave an indication last week of his vision for renewing Euro-Mediterranean relations (see EUROPE 10607). Revision will be radical. The Union for the Mediterranean was described by Ms Guigou as an “error from the very outset”. “There is total deadlock”, she added. She said that a totally different line would be taken, extending the Euro-Mediterranean dialogue to the whole of Africa, in full respect for the rights and sovereignty of each people. The general thrust remains somewhat vague. Clarification and greater detail are required.
(FR/transl.rt)