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What Hollande’s Election Means

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Hollande’s at Presidential program can significantly slow down recovery of the European economy and worsen economic positions of France

Win of François Hollande at presidential election in France can significantly slow down recovery of the European economy form recession and worsen economic positions of the country thus facilitating lag of the French economy from German.

France has lower competitiveness than Germany. This is facilitated by high taxes, high budget deficit and high level of public debt. In 2012 public debt to GDP rate will be about 89% comparing to 85.8% in 2011. Similar dynamics requires strict measures for budget balancing which in fact is absent in Hollande’s program. That is why the new Head of State is unlikely to succeed in lowering public debt to 46.8% GDP by 2015 as indicated in his presidential election program.

According to the President’s election program budget deficit should be lowered to 3% GDP in 2013 and financial balance should be recovered by the end of term. For this purpose return to tax benefits is planned. However, dominating experience in applying tax benefits during 2008-2009 crisis shows that, in many cases, budget income losses due to their use are not compensated by advantages of such benefits. Administration of tax benefits leads to decrease of tax payment simplicity rates, thus, lowering country’s competitiveness. Benefit bet will obviously lead to substitution of labour with capital which will reduce employment and increase costs of creating new workplaces. In addition, they contribute to growth of abuse in tax system and lower project efficiency. Applying of tax benefit causes tax loss and, as result, the projects which should not be implemented in the absence of preferences become more economically advantageous provided actual subsidy on the part of the state. Thus, there are well-grounded opinions that such measures of stimulating economic growth will have long-term effect and compensate losses of budget revenues. That is, they can lead to the budget balancing, in particular, under conditions of active social policies. Here cancellation of the planned VAT increase should be added, which will cause revenues decrease. That is to say, the policy of stake at actions having unconfirmed future effect is extremely dangerous for current state of European economy.

It is obvious that implementing of the President’s program will already in 1 or 2 years make François Hollande to resort to foreign loans which will be more expensive for Paris than for Berlin. Necessary financial provision of social programs in 2013-2014 prospects will make the country’s government change its priority to budget balancing. As a result current roll to social policies is unlikely to receive support from Berlin what will obviously cause adjustments in Hollande’s future plans.

François Hollande’s plans concerning review of the European Budget Discipline Treaty formed by the former French president Nicolas Sarkozy and Chancellor of Germany Angela Merkel, will become significant problem for Eurozone. There are doubts that Europe will succeed in redirecting fiscal efforts of the European Union from austerity measures to growth. Instead of that France can obviously head movement of fringe nations relating to mitigation of austerity measures in Europe.

François Hollande’s policy provides evidence of an attempt to place bets on soft protectionism under conditions of severe competition. This is witnessed by the French President’s plans to adopt Directive on protection of public services in EU, protection of presence of local public services in rural areas, protection of marine economy and a new trade policy preventing all forms of unfair competition.

Significant doubts concerning effectiveness of the stated policy are caused by Hollande’s plans for with restrictions in bank sector with the view to eliminate toxic financial products, introduce tax for all financial operations and lower bank charges to restrict service costs charged by banks. Similar initiative will, provided its adoption by all EU Member States, change the existing system of financial flows in favour of countries which did not support it. At the G20 Summit only seven states of 20 agreed to introduce the “Tobin tax” while the rest of participants pointed at possible capital runoff to countries with more liberal tax legislation. Herewith, according to the European Commission’s forecast, introduction of the tax may slow down economic growth in alliance over a long period within 0.53%-1.76% range of GDP. At the same time positions of French banking establishments will worsen and their competitiveness will decrease having sharpened all their current problems.

An initiative relating to introduction of 75% tax for all incomes exceeding € 1 million and increasing the second in size tax to 45% comparing to the current 41%. Such approach to budget filling has already failed in Great Britain where it became reason for reducing foreign investments and significant capital runoff from the country.

Basic structural shortcomings of the French economy are high payroll taxes and labour market regulations. However, Hollande’s program does not solve neither of them while, on the contrary, offering to open series of consultations with trade unions.

According to out assessments high probability of continuing crisis phenomena in French economy and ineffectiveness of economic part in Hollande’s election program may, in the mid-term period, lead to strengthening of the ultra-right forces in the country.

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Europe

Time to Tackle the Stigma Behind Wartime Rape

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Images: UN Women Kosovo

The youngest capital city in Europe, Pristina, is the ultimate hybrid of old and new: Ottoman-era architecture stands amongst communist paraphernalia, while Kosovars who lived through the bloodshed of the 20th century share family dinners with a generation of young people with their sights set on EU accession.

This month, the capital’s Kosovo Museum welcomed a new force for change; Colours of Our Soul, an exhibition of artwork from women who survived the sexual violence of the Yugoslav Wars, showcases the world as these women “wished it to be.”

Colours of Our Soul isn’t the first art installation to shine a light on the brutal sexual violence thousands of Kosovar victims suffered throughout the turmoil of the conflict which raged from 1988 to 1999. In 2015, Kosovo-born conceptual artist Alketa Xhafa-Mripa transformed a local football pitch into a giant installation, draping 5,000 dresses over washing lines to commemorate survivors of sexual violence whose voices otherwise tend to go unheard. “I started questioning the silence, how we could not hear their voices during and after the war and thought about how to portray the women in contemporary art,” said Xhafa-Mripa at the time.

Victims, and their children, pressed into silence

The silence Xhafa-Mripa speaks of is the very real social stigma faced by survivors of sexual violence in the wake of brutal conflict. “I would go to communities, but everyone would say, ‘Nobody was raped here – why are you talking about it?’”, remarked Feride Rushiti, founder of the Kosovo Rehabilitation Centre for Torture Victims (KRCT).

Today, KRCT has more than 400 clients— barely a scratch on the surface given that rape was used in Kosovo as an “instrument of war” as recently as two decades ago. Some 20,000 women and girls are thought to have been assaulted during the bloody conflict; the fact that the artists whose work is featured in the Colours of our Soul exhibition did not sign their work or openly attend the installation’s grand opening is a sign of how pervasive the stigma is which haunts Kosovar society to this day.

As acute as this stigma is for the women who were assaulted, it is far worse for the children born from rape, who have thus far been excluded from reparation measures and instead dismissed as “the enemy’s children.” In 2014, the Kosovar parliament passed a law recognising the victim status of survivors, entitling them to a pension of up to 220 euros per month. Their children, however, many of whom were murdered or abandoned in the face of community pressure, are barely acknowledged in Kosovar society and have become a generation of young adults who have inherited the bulk of their country’s dark burden.

A global problem

It’s a brutal stigma which affects children born of wartime rape all over the world. The Lai Dai Han, born to Vietnamese mothers raped by South Korean soldiers, have struggled for years to find acceptance in the face of a society that views them as dirty reminders of a war it would rather forget. The South Korean government has yet to heed any calls for formal recognition of sexual violence at the hands of Korean troops, let alone issue a public— and long-awaited— apology to the Lai Dai Han or their mothers.

In many cases, as in the case of Bangladesh’s struggle for independence, the very existence of children born from rape has often been used as a brutal weapon by government forces and militants alike. Official estimates indicate that a mammoth 200,000 to 400,000 women were raped by the Pakistani military and the supporting Bihari, Bengali Razakar and al-Badr militias in the early 1970s. The children fathered, at gunpoint, by Pakistani men were intended to help eliminate Bengali nationhood.

Their surviving mothers are now known as “Birangana”, or “brave female soldier,” though the accolade means little in the face of a lifetime of ostracization and alienation. “I was married when the soldiers took me to their tents to rape me for several days and would drop me back home. This happened several times,” one so-called Birangana explained, “So, my husband left me with my son and we just managed to exist.”

No end in sight

Unfortunately, this barbaric tactic of rape and forced impregnation is one that is still being used in genocides to this day. The subjugation of the Rohingya people, for example, which culminated in a murderous crackdown last year by Myanmar’s military, means an estimated 48,000 women will give birth in refugee camps this year alone. Barring a major societal shift, the children they bear will suffer ostracization similar to that seen in Kosovo, Vietnam and Bangladesh.

Initiatives like the Colours of Our Soul installation in Pristina are not only central in helping wartime rape survivors to heal, but also play a vital role in cutting through the destructive stigma for violated women and their children. Even so, if the number of women who submitted their paintings anonymously is anything to go by, true rehabilitation is a long way ahead.

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EU–South Africa Summit: Strengthening the strategic partnership

MD Staff

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At the 7th European Union–South Africa Summit held in Brussels Leaders agreed on a number of steps to reinforce bilateral and regional relations, focusing on the implementation of the EU-South Africa Strategic Partnership. This includes economic and trade cooperation and pursuing the improvement of business climate and opportunities for investment and job creation which are of mutual interest.

Leaders also discussed common global challenges, such as climate change, migration, human rights, committing to pursue close cooperation both at bilateral level and on the global stage. A number of foreign and security policy issues, including building and consolidating peace, security and democracy in the African continent and at multilateral level were also raised. Leaders finally committed to work towards a prompt resolution of trade impediments affecting smooth trade flows.

Jean-Claude Juncker, President of the European Commission and Donald Tusk, President of the European Council, represented the European Union at the Summit. South Africa was represented by its President, Cyril Ramaphosa. EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini, Vice-President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen and Commissioner for trade Cecilia Malmström also participated, alongside several Ministers from South Africa.

President Juncker said: “The European Union, for the South African nation, is a very important trade partner. We are convinced that as a result of today’s meeting we will find a common understanding on the open trade issues. South Africa and Africa are very important partners for the European Union when it comes to climate change, when it comes to multilateralism. It is in the interest of the two parties – South Africa and the European Union – to invest more. It will be done.” A Joint Summit Statement issued by the Leaders outlines amongst others commitment to:

Advance multilateralism and rules based governance

Leaders recommitted to work together to support multilateralism, democracy and the rules-based global order, in particular at the United Nations and global trade fora. South Africa’s upcoming term as an elected member of the United Nations Security Council in 2019-2020 was recognised as an opportunity to enhance cooperation on peace and security. As part of their commitment to stronger global governance, Leaders stressed their support to the process of UN reform, including efforts on the comprehensive reform of the UN Security Council and the revitalisation of the work of the General Assembly. Leaders reiterated their determination to promote free, fair and inclusive trade and the rules-based multilateral trading system with the World Trade Organisation at its core and serving the interest of all its Members.

Bilateral cooperation

Leaders agreed to step up collaboration in key areas such as climate change, natural resources, science and technology, research and innovation, employment, education and training including digital skills, health, energy, macro-economic policies, human rights and peace and security. The EU and South Africa will, amongst others, explore the opportunities provided by the External Investment Plan. Linked to this, Leaders committed to exploring opportunities for investment, technical assistance including project preparation, and the improvement of business and investment climates to promote sustainable development. Leaders welcomed the conclusion and provisional implementation in 2016 of the EU-Southern African Development Community (SADC) – Economic Partnership Agreement (EPA).

Leaders also committed to find mutually acceptable solutions to impediments to trade in agriculture, agri-food and manufactured goods. They agreed to work towards a prompt resolution of these impediments.

Regional cooperation

Leaders welcomed the new Africa-Europe Alliance for Sustainable Investment and Jobs put forward by the European Commission. They exchanged views on foreign and security policy issues, addressed a number of pressing situations in the neighbourhoods of both the EU and South Africa, and welcomed each other’s contribution to fostering peace and security in their respective regions. Leaders agreed to explore opportunities to enhance cooperation on peace and security, conflict prevention and mediation.

Leaders confirmed common resolve to reform the future relationship between the EU and the countries of the African, Caribbean and Pacific Group of States. To this end they are looking forward to the successful conclusion of negotiations for a post-Cotonou Partnership Agreement, that will contribute to attaining the goals of both the United Nations 2030 Agenda on Sustainable Development and the long-term vision for African continent – Agenda 2063.

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Macron so far has augmented French isolation

Mohammad Ghaderi

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French President Emmanuel Macron has recently criticized the unilateral pullout of the US from the Joint Comprehensive Plan of Action (JCPOA) but at the same time expressed pleasure that Washington has allowed France and the other JCPOA signatories to stay in the Iran nuclear deal.

In an exclusive interview with the CNN, Macron said that he has “a very direct relationship” with Trump. “Trump is a person who has tried to fulfill his electoral promises, as I also try to fulfill my promises, and I respect the action that Trump made in this regard. But I think we can follow things better, due to our personal relationship and talks. For instance, Trump has decided to withdraw from the Iran pact, but at the end, he showed respect for the signatories’ decision to remain in the JCPOA.”

There are some key points in Macron’s remarks:

First, in 2017, the French were the first of the European signatories to try to change the JCPOA. They tried to force Iran to accept the following conditions: Inspection of military sites, application of the overtime limitation on nuclear activities, limiting regional activities, including missile capabilities within the framework of the JCPOA.

Macron had already made commitments to President Trump and Israel’s Prime Minister Benjamin Netanyahu to push Iran to accept the additional protocols to the deal, and he pushed to make it happen before Trump left the JCPOA.

Second, after the US withdrawal from the Iran nuclear deal, although France expressed regret, they had secret negotiations with US Secretary of State Mike Pompeo over the JCPOA.

The result of the undisclosed talks was deliberate delay on the part of the European authorities in providing a final package to keep the Iran deal alive. In other words, after the US unilaterally left the JCPOA, the French have been sloppy and maybe somewhat insincere about making the practical moves to ensure it would be saved.

Third, France has emphasized the need to strengthen their multilateralism in the international system and has become one of the pieces of the puzzle that completes the strategic posture of the Trump Administration in the West Asia region.

Obviously, French double standards have irritated European politicians, many of whom have disagreed with the contradictory games of French authorities towards the US and issues of multilateralism in the international community. Also, France’s isolation and its strategic leverage in the political arena has grown since the days of Sarkozy and Hollande. Some analysts thought that Macron and fresh policies would stop this trend, but it has not occurred.

First published in our partner MNA

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