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| Europe |
| Bad news for EU vote as French prices outpace pay |
| 2005-03-27 |
| EFL - requires subscription French voters were given more cause to be disgruntled with their government on Friday when it emerged that salaries have not been rising fast enough to match price increases in shops. The disclosure which followed disappointing economic forecasts on Thursday undermined attempts to persuade the French to set aside domestic grumbles and back the European Union constitution in May's referendum. France's employment ministry said on Friday that an index of salaries rose 0.3 per cent in the final three months of 2004. This was less than the 0.5 per cent increase in consumer prices, excluding tobacco. The failure of salaries to keep pace with the cost of everyday staples comes amid widespread concern about the purchasing power of the French public. Anger at the perceived difficulty of making ends meet was one of the factors that propelled demonstrations and strikes across France earlier this month. The grassroots-level dissatisfaction has threatened to turn the European referendum into a protest vote against the government's stewardship of the economy. Since the demonstrations, the government has agreed to reopen public sector pay talks. It has announced changes to company profit-sharing schemes, allowing employees immediate access to their money. It has also introduced tax incentives to encourage companies to distribute more profits to staff. However, the government received a setback on Thursday when Insee, the state statistics agency, said it expected a "return to slowdown" for the French economy in the first half of 2005. [A] poll of 856 people by the CSA Institute said 55 per cent of those with an opinion would reject the treaty if the vote were held tomorrow. The poll was the third in the past week to show French opponents to the treaty outnumber sympathisers, underscoring Mr Chirac's effort to shore up support. A defeat in the referendum would scuttle the constitution, which requires unanimous approval of all 25 states. Henri, poll once again - these results didn't come out correctly. |
| Posted by:too true |
| #9 I think you miss the point, jackal. This slowdown in France may cause the French to toss out the EU Constitution and effectively the current strategies in Chirac's and the EU's policies. Policies that would sell arms to Saddam even as he defied his Gulf War I obligations. Policies that would undermine the U.S. by creating a "multi-polar world". Policies like selling arms to the Chinese. Chirac is very full of himself and has personally undermined us many times in recent years. He would precipitate WWIII for a few Euros and a chance to bash Bush. Good riddance to him, even if French workers and American workers have to suffer a little bit. Chirac's "multi-polar world" could have the whole world suffering in ways that could make an economic slowdown look like paradise. |
| Posted by: Tom 2005-03-27 10:02:59 PM |
| #8 I have to disagree with #5 and #6. France is a pretty big market for our goods. Nowhere near as big as Canada or Mexico or Britain, but not insignificant like Nepal. Actually, any country's economy affects ours, at least a little. I grew up in the Detroit area, where many would have cheered a Japanese Depression. The reality wasn't so nice, though. There's no real difference between a country putting an import embargo on our goods and simply being too poor to afford any. In both cases, we lose jobs. |
| Posted by: jackal 2005-03-27 9:10:48 PM |
| #7 French voters were given more cause to be disgruntled with their government on Friday when it emerged that salaries have not been rising fast enough to match price increases in shops. I expect the typical French response - go on strike, trash a McDonald's or two, etc. |
| Posted by: Raj 2005-03-27 3:01:41 PM |
| #6 It isn't, for us .... heh |
| Posted by: too true 2005-03-27 2:12:53 PM |
| #5 Why is this viewed as bad news? |
| Posted by: Mrs. Davis 2005-03-27 2:08:07 PM |
| #4 Ze Petit Patrie, she's up a merde creek without a paddle. |
| Posted by: gromgoru 2005-03-27 2:07:22 PM |
| #3 I think the French are making tobacco runs across the border, where the tax is not nearly so high, therefore the increased price wouldn't have much of an impact of the cost of living. So, economic reality is hitting France, despite all their lovely and highly intellectual theories? How utterly unsubtle of it! |
| Posted by: trailing wife 2005-03-27 2:03:04 PM |
| #2 French voters were given more cause to be disgruntled with their government on Friday when it emerged that salaries have not been rising fast enough to match price increases in shops. Err...maybe because French worker productivity hasn't been rising either. 35 hours work weeks. Yep, that's the ticket. |
| Posted by: Glereger Clugum6222 2005-03-27 2:01:19 PM |
| #1 excluding tobacco. The failure of salaries to keep pace with the cost of everyday staples What? Tobac not a staple anymore? |
| Posted by: Shipman 2005-03-27 1:55:25 PM |