French-American Foundation Weekly Brief highlights political, economic and cultural news stories related to France and French-American relations as well as trans-Atlantic and European issues.
- France’s unemployment tops 3 million. Euro-crisis scramble continues.
- More women in European boardrooms?
- Plane sales up. Automobile sales down.
- Conventions confirm nominations, solidify party platforms.
- Bernanke keeps optimistic markets waiting even as economic news disappoints.
- One Clinton well-received in Charlotte, another less well in Beijing.
France & Europe
expanded
Employment Minister Michel Sapin confirmed on Sunday, September 2, that unemployment in France had reached the symbolic threshold of 3 million, a level not seen since 1999, as explored by The Washington Post and Rue 89. The news came after President François Hollande announced on Wednesday, August 29, plans to create 150,000 state jobs for unemployed youth. The program, known as “emplois d’avenir,” is a re-working of the “emplois jeunes” program launched by the Socialist Party in 1997, as explored by Reuters, Bloomberg and Le Monde.
Before the European Central Bank’s meeting set for Thursday, September 6, French President François Hollande met with Italian Prime Minister Mario Monti on Tuesday, September 4, to address the ongoing debt crisis. The two leaders called on European authorities to reduce borrowing costs for struggling nations, claiming that the link between hesitant markets and debt bonds no longer corresponded with economic fundamentals, Reuters, AFP and Le Nouvel Observateur reported.
Moody’s announced on Monday, September 3, that the credit-ratings agency would be maintaining the Aaa rating assigned to the European Union but would change the outlook to negative, putting pressure on the eurozone to address debt problems, with particular pressure put on its top two economies – Germany and France, The San Francisco Chronicle and Boursier reported.
As German Chancellor Angela Merkel visited Beijing on Thursday, August 30, Chinese officials signed a contract for 50 Airbus planes worth about €2.8 billion, Reuters and La Tribune reported. A smaller order than expected, it was the first contract between China and the European plane manufacturer since a proposed European carbon-trading plan created a dispute between the two entities, as covered by Le Monde and Business Insider.
The Financial Times reported that the European Commission will make public proposed legislation next week that would require the supervisory boards of all companies to be comprised of at least 40 percent women, requiring each European Union member state to set sanctions and fines for noncompliant companies, Bloomberg and Rue 89 reported. France, as well as the Netherlands, Italy and Spain, already have such quotas.
Lawyers for jailed Ukrainian opposition leader Yulia Tymoshenko filed an appeal with the European Human Rights Court in Strasbourg, France, on Tuesday, September 4, accusing the Ukrainian government of fixing the criminal case for corruption and abuse of power, The Washington Post and Libération reported. The appeal came after Ukraine’s High Court announced its ruling on Wednesday, August 29, upholding the original seven-year sentence given to the former prime minister and leader of the “Orange Revolution” of 2004-2005, according to Mediapart.
The Committee of French Automobile Manufacturers released its monthly report on Monday, September 3, showing that registration of new cars had dropped 11.4 percent year-to-year in August, the tenth straight month car registrations dropped in France, Reuters and L’Express reported. Across the Atlantic, U.S. auto manufacturers announced double-digit increases in auto sales for August, as reports show that higher gas prices continue to drive consumers to seek out compact cars and small SUVs, as covered by The New York Times.
The TNS-Sofres 100-day popularity poll gave President François Hollande the lowest approval rating, at about 50 percent, just more than three months into his presidency, Bloomberg reported. Hollande explained his low popularity and the seeming premature end to his “honeymoon period” on the stress created by the European debt crisis, according to Le Parisien.
United States
expanded
The Democratic National Convention began in Charlotte, North Carolina, on Tuesday, September 4, bringing together leaders of the party – established and up-and-coming – to endorse President Barack Obama as the incumbent candidate in the upcoming presidential elections, Le Nouvel Observateur, The Washington Post and L’Humanité reported. On Wednesday, September 5, former President Bill Clinton delivered a 50-minute address that enthralled the crowd and reached out to undecided voters, boasting the achievements and competence of the President, as covered by Le Figaro and Le Nouvel Observateur. Democratic leaders have said that the convention will be more positive than the Republican National Convention, which ended on Thursday, August 30. At the Republican Convention, presidential candidate Mitt Romney, vice-presidential candidate Paul Ryan and other party leaders outlined their plans for the future, while attempting to humanize the candidates. However, the convention largely focused on the failure of Obama’s first term, as covered by The LA Times, TF1 and Slate. Le Point looked at the effect the conventions have on political support, pointing out that the Republican Convention in Tampa, Florida, seemed to provide Romney with only a meager boost in polling shortly after the event.
Ben Bernanke, chairman of the Federal Reserve, delivered a highly anticipated speech on Friday, August 31, at the annual summit of the nation’s central bank in Jackson Hole, Wyoming, continuing his stance that the “Fed” will act as needed but giving no outline of a new stimulus plan, as some had expected, Boursier and L’AGEFI reported. The speech, leaving open the possibility of action, eased concern as markets on both sides of the Atlantic rose on the day, according to Les Echos. Bernanke delivered a positive diagnostic for the U.S. economy, touting the 3.0-percent growth in the first two quarters and the recovery of 2 million jobs, saying that the spike in unemployment in recent years were characteristic of the recession and not a greater structural change in the U.S. economy, as explored by Bloomberg.
Secretary of State Hillary Clinton arrived in Beijing on Tuesday, September 4, in a tour of the Asia-Pacific region. In China, Clinton will meet with Chinese leaders in hopes of easing tension in the ongoing territorial disputes in the China Sea, Le Figaro and RFI reported. BBC and The Wall Street Journal explored the cold welcome Clinton received from a China increasingly skeptical of U.S. involvement in the ongoing conflict there.
The New York Times and Les Echos reported this week that the Obama administration was nearing an agreement with the Egyptian government to follow through with a promise to relieve $1 billion of debt facing the nation. The United States has also supported a $4.8-billion loan still being negotiated between Egypt and the International Monetary Fund.
Wall Street slipped slightly on Tuesday, September 4, as several disappointing reports for the United States added to wariness about the European debt crisis, Le Parisien reported. The Institute for Supply Management’s index for August showed that manufacturing in the nation has been weakening for three straight months, reaching its lowest level since 2009, while the U.S. Census Bureau reported that residential-construction spending in July had dropped 1.58 percent from June, as covered by The Financial Times and The Christian Science Monitor.