Late last week the President of Venezuela announced a 60 day State of Economic Emergency as their financial situation continued to deteriorate due to the decline in oil prices. And now on Jan. 18, the European nation of France has joined in the festivities and called for their own State of Emergency.
French President Francois Hollande issued the economic decree in an attempt to circumvent the continuing downward spirals that are affecting jobs and overall production. And while this economic emergency is not as restrictive as the one imposed in Venezuela, it recognizes the importance of the situation in France, where Hollande will seek to work with local businesses on how to stimulate growth.
French President Francois Hollande has declared “a state of economic emergency,” saying it’s time to redefine France’s economic and social model, AP said. In an annual speech to business leaders on Monday, he laid out a series of proposed economic measures to boost long-stagnant growth and reduce chronic unemployment. However, the first measures he proposed were seen as relatively modest. The president will not “put into question” the 35-hour workweek or seek to assume any new emergency powers. – Russia Today
France’s economy has been under tremendous stress every since Hollande took office back in 2012, and the nearly two years worth of sanctions against Russia have only lengthened the scope of their recession. Couple this with the fact that Hollande has driven out many businesses with his ‘tax the rich’ schemes that he came into office with, and you see that they have brought about a rise to far left political parties, such as the one being led by activist and politician Marine Le Penn.
Of the major EU economies who came out of the 2008 and 2010 financial crises, France has not been one who stabilized and grew despite the fact that their neighbors Germany and Britain emerged relatively well. And even with a new focus on somehow stimulating their economy in this environment of deflation and recession, it is unlikely that Hollande’s strong stance will change anything, and may even alienate French workers who are unwilling to bend on their hard fought victories achieved over time in their labor market.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.