It's not every day that an arcane European Union initiative goes viral online. But last Friday turned out to be that day thanks to French Finance Minister Bruno Le Maire exporting his frustration with the slow progress of the bloc's capital markets union (CMU) project straight to social media with an online clip that has since amassed more than 8.5 million views.
Now, a whole host of online channels are circulating the French-language clip, in some cases in AI-enhanced dubbed English, as proof that the EU is bankrupt and that Brussels is on the verge of raiding Europeans' savings, sparking critiques and memes. At issue is Le Maire's contention that a capital markets union would give authorities the “ability to mobilize all of Europeans' savings, some €35,000 billion worth, to finance the climate transition, fund our defense efforts, and invest in artificial intelligence.” Some, such as Arnaud Bertrand — a tech entrepreneur whose posts frequently fetch over 1 million views on X (formerly known as Twitter) — alleged Le Maire was “straight out declaring that Europe has run out of money” and signaling EU leaders’ intent to use Europeans' bank deposits to fund public spending, including on aid to Ukraine. But that's not quite what's happening here. The real point of the CMU is to create a single market for investment in the EU — one where people can invest across borders easily, much as they do across states in the U.S., while also benefitting from scaled-up services. So, rather than having 27 national pension schemes, under the vision consumers could pay into a pan-EU one. And, rather than navigating different tax regimes across EU countries, people could invest abroad in the EU as easily as they can in their home country. European companies, meanwhile, would be able to access financing from the whole of the EU, rather than being forced to list in the U.S., as German company Birkenstock did last year to Brussels' embarrassment. The key confusion with the online reaction to Le Maire's rant is that requisitioning savings is not on anyone's agenda. The CMU, as it stands, is intended to be entirely voluntary. What's more, even those in EU policy circles believe Le Maire's bark is worse than his bite in pushing for the project. Le Maire expressed equally bombastic language to reporters. “I’m fed up with discussions. I’m fed up with empty statements. Do you really think that China and the U.S. will be impressed by our statements? We need decisions,” he told reporters as he entered Friday's meeting of European finance ministers in Ghent, Belgium. However, given the glacial progress on the initiative to date, some of the French frustration might be justified. The EU has wanted a single market for capital since close to its inception, while the European Commission has been trying to regulate a CMU into existence since revealing a dedicated action plan nearly a decade ago. Today's reinvigorated push for action is a function of the EU struggling to keep up in an increasingly competitive landscape. Unlike the U.S., the bloc can't easily throw huge sums of money at green industrial policy via an Inflation Reduction Act-style act. Nor can it match China's aggressive state support for key industries like solar panels and chip manufacturers. Meanwhile, the importance of meeting green and digital transition goals has upped the urgency of unlocking private investment alongside public funds. This is especially the case now that governments, in the wake of unprecedented levels of EU public spending to prop up the economy during the Covid-19 pandemic and during the energy crisis that followed Russia’s invasion of Ukraine in 2022, are having to tighten their belts. For now, the EU is working on moving the CMU along at different levels. Finance ministers plan to sign off on a political statement with their priorities for the project next month, and former European Central Bank chief Mario Draghi is working on a report about the EU’s competitiveness. The Commission, on its part, has put forward legislation on listing and retail investment with the aim of making capital flows across the bloc more simple. But Le Maire’s argument is that none of this is enough, and if the EU tries to move forward with 27 countries on board, the CMU will never get done due to the complexity. Instead, he wants a smaller group of countries to move forward with cross-border projects to speed up investment. Nonetheless, at the Ghent summit, officials involved in the drafting of the Eurogroup statement and deputies from national ministries gave a resounding eye-roll to Le Maire’s latest outburst, knowing that behind closed doors he is far more cooperative. France’s finance ministry, meanwhile, isn’t too worried about the naysayers. Speaking to POLITICO, one spokesperson said the CMU project is “clear and credible” and France will keep working on it. “For those who have questions, we are open to discussion to make it understandable,” they added.
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French President Emmanuel Macron has argued that deployments of troops to Ukraine by NATO members and other allies cannot be ruled out because Western powers must stop at nothing to ensure that Russia does not defeat Kiev’s forces.
“There’s no consensus today to send, in an official manner, troops on the ground,” Macron told reporters after hosting a meeting of European leaders on Monday in Paris. “But in terms of dynamics, we cannot exclude anything. We will do everything necessary to prevent Russia from winning this war.” France hosted Monday’s summit of Ukraine backers to demonstrate steadfast support and European unity amid concerns that US aid to Kiev may stop, especially if Donald Trump wins this year’s presidential election. Macron said that while Ukraine’s European allies want to avoid escalating the conflict into a direct war with Russia, they agree that they must do more to ensure that Moscow doesn’t win. “We have to take stock of the situation and realize our collective security is at stake,” the French leader said. “We have to ratchet up. Russia must not win, not only for Ukraine, but secondly, we are, by doing so, ensuring our collective security for today and for the future.” Macron noted that the allies who say “never, ever” today about direct troop deployments to Ukraine are the same ones that previously ruled out escalations of military aid that were later granted, including long-range missiles and fighter jets. “Two years ago, a lot around this table said that we will offer helmets and sleeping bags, and now they’re saying we need to do more to get missiles and tanks to Ukraine. We have to be humble and realize that we’ve always been six to eight months late, so we’ll do what is needed to achieve our aim.” There is broad consensus among the nations represented at Monday’s meeting that the allies must provide more aid to Ukraine and step up more quickly, Macron claimed. “We are not at war with the Russian people, but we cannot let them win in Ukraine,” he said, adding, “We are determined to do everything necessary for as long as necessary. That is the key takeaway from this evening.” Washington ran out of money for Ukraine last month, after burning through $113 billion in congressionally approved aid packages. US President Joe Biden is seeking an additional $60 billion in Ukraine funding as part of an emergency spending bill that also includes aid for Israel and Taiwan. Conservative Republican lawmakers have balked at approving more aid for Ukraine, saying Biden is merely prolonging the conflict without changing its outcome. Trump has claimed he would end the crisis swiftly by forcing the Ukrainian and Russian leaders to the negotiating table. The French government is scrambling to get a whole lot of tractors off the nation’s major highways. Good luck with that when 89% of French citizens back the protesting farmers, according to a new Odoxa poll.
France is joining a movement that now encompasses nearly 20% of the EU, with farmers in five of the bloc’s 27 countries convoying and blockading major roads. Farmers in Poland, Romania, Germany, and the Netherlands have now been joined by their counterparts from the country virtually synonymous with revolution. And one particular incident here in France has just shifted the nascent movement into overdrive. Alexandra Sonac, a 35-year-old cattle and corn farmer from the south of France, and two of her three family members were struck by a car in the dark early morning hours at a farmers’ highway blockade near Toulouse. Sonac and her 12-year-old daughter were killed, while her husband is in intensive care. The incident is still under investigation, but to add insult to injury, the three Armenian occupants of the vehicle that struck the family were reportedly under an expulsion order. The symbolism here is glaring. A productive farmer resisting government economic oppression was killed by someone who has enjoyed the benefits of government laxity. Just 12% of expulsion orders were carried out by France between 2015 and 2021, one of the lowest rates in Europe, according to recent statistics. French farmers’ complaints converge with those of their counterparts across the EU. They’re angry with their own governments, but only because these elected officials have insisted on sliding into the fitted straitjacket imposed on them by the unelected technocratic tyrants in Brussels and their top-down, ideologically driven policies. There’s a good reason why French farmers this week have ripped up and burned the same EU flag that President Emmanuel Macron insists on placing alongside the French tricolor in his various appearances. Farmers all across the bloc have similar demands. They want a fair price for energy while the EU not only has imposed costly climate policies that treat fossil fuels like the plague, but has also decided, “for Ukraine,” to destroy its own supply of cheap Russian gas that drove Europe’s economy. Then, again for Ukraine, they decided to lift import duties on goods and services from Ukraine, allowing the EU to be flooded with truckers who undercut local providers and with equally undercutting farm products that don’t even meet the EU standards with which European farmers are forced to comply at their own expense. Farmers don’t want handouts, but they want governments to lay off the increasingly heavy taxation as their solution to filling state coffers emptied as a result of their constantly misplaced priorities. They also want their national governments to defend their interests against Brussels’ attempts to replace them with cheap foreign imports through endless free trade deals with countries whose farmers don’t operate under the same regulatory diktats, all while Brussels pushes member states (notably the Netherlands) to buy out farms whose cattle waste doesn’t serve its climate change policies. It’s no surprise that the average person sympathizes, since they’re equally fed up with their incompetent heavy-handed government serving as a white glove for Brussels’ iron fist. They see that their gas and electricity costs are endlessly climbing, and their buying power is circling the drain, all while the French defense minister, for example, talks about how the Ukraine conflict, that has served as a convenient pretext for Europe’s transfer of wealth from the people to the elites, is such a wonderful opportunity for the military industrial complex. And when the French National Assembly approved themselves a €300 ($327) a month increase in their own allowances this week, just to offset the inflation that’s crushing the average citizen, it serves as yet another example of their total tone-deafness. On the afternoon of January 24, a massive row of tires and manure was set ablaze by angry French farmers right in front of the prefecture of Agen, in southwest France. Some farmers present denounced the move, others voiced their support, but all agreed to being fed up. More tellingly, police and firefighters on the scene dragged their feet in reacting as the smoke extended almost to the height of the adjacent building, considered a symbol of the French state. Apparently, even frontline workers who serve the state’s institutions are getting fed up with the establishment elites. And not just in Europe, but elsewhere in the West. Canadian Freedom Convoy truckers and their supporters were vindicated in Canadian Federal Court this week when a judge ruled that Prime Minister Justin Trudeau’s government constitutionally violated fundamental rights and freedoms when it evoked the Emergency Act against protesting opponents to the government’s Covid mandates, which they considered a violation of basic rights and freedoms. The fact that the government ordered bank accounts blocked as a deterrent against protesting should have been the first big hint of growing authoritarianism, but apparently it took a federal judge to spell it out. German farmers and truckers who began convoying across the country earlier this month told me in Berlin that they were inspired by the Freedom Convoy as they railed against the German government’s imposition of more taxes on the diesel that fuels their farm vehicles, already pricy as a result of the government’s misguided energy policies driven by ideological, knee-jerk opposition to fossil fuels and to cheap gas from Russia. In both the Freedom Convoy and farmer cases, grotesque attempts by government officials to portray protesters as some kind of right-wing radicals, to absolve elites from responsibility, have fallen flat among the general population.
According to the report, mostly small and medium-sized enterprises (SMEs) were bearing the brunt of the closures in 2023. Businesses, employing up to 250 people, accounted for vast majority of the total, with 55,435 closures. Meanwhile, medium and large firms with over 250 employees, also saw an increase in closures, the regulator noted, adding that their numbers reached 57, doubling from 2022. The negative trend became the most notable in the restaurant and hotel business, where the number of busts surged 44.6% year-on-year, while the sector of information and communication technologies saw an increase of 44.4%. The country’s agricultural sector was the only one recording a drop of 1.3% in the number of bankruptcy filings.
In December, the Financial Times reported that the number of corporate bankruptcies across the world exceeded levels reached during the 2008 global financial crisis. Analysts attribute the surge to higher key rates, as well as self-liquidation of so-called ‘zombie firms,’ which had pulled through the Covid era only thanks to government support. According to the outlet, a spokesperson for France’s second biggest grocery has chain confirmed that it will place a note on shelves that have displayed PepsiCo goods which reads “We are no longer selling this brand due to unacceptable price increases.” It is unclear whether PepsiCo products already on Carrefour shelves will be withdrawn, the report added. In October, PepsiCo warned of “modest” price hikes in the new year amid steady demand. The US snacking and beverage giant has raised prices for seven consecutive quarters, hiking them by double digits in the July-September period last year. The company also reduced package sizes of some of its products claiming the aim was “to meet consumer demand for convenience and portion control.”
Last year, amid high consumer inflation, grocery retailers in several EU countries challenged global food giants over prices. Carrefour started a “shrinkflation” campaign in September, sticking warnings on goods that have shrunk in size but cost more. Negotiations are underway in France between food manufacturers and retailers, with the latter demanding price cuts, as they say prices for raw materials and energy have recently come down. Food industry representatives argue that production costs remain high and that manufacturers have absorbed significant inflationary shocks. Sales of champagne in France have dropped by more than 20% this year due to skyrocketing prices for the sparkling beverage, the BFM Business TV channel reported on Tuesday.
The average price for a liter of champagne is reportedly hovering around €30 ($32), causing the French to opt for alternatives such as Alsace cremant and prosecco, which are up to five times cheaper. “Champagne is going through tough times because it’s too expensive for many French people,” Dominique Schelcher, CEO of retail cooperative Systeme U, told the media. “Other sparkling wines, such as Cremant d’Alsace, are on the rise.” Earlier this year, France’s Champagne Committee predicted that production of the sparkling beverage in the country would decline by about 6% to 130 million bottles by 2023, compared to 138.4 million bottles in 2022. The organization also forecast that champagne sales and exports would see a dramatic drop this year, pressured by inflation and a return to more typical trends after record demand in the past two years due to the lifting of pandemic-related curbs. If the pattern observed over the first 11 months of the current year continues in the coming weeks, champagne sales could decline to 110 million bottles for the whole of 2023, marking the lowest level in years. Food and energy have been particularly affected by inflation in France, which peaked at 6.3% in February, having been on the rise since the end of 2020. Although inflation has begun to ease in recent months, standing at 3.4% in November, food prices in France continue to increase.
In an undated video shared on Sunday by the Ukrainian Defense Ministry, President Vladimir Zelensky is seen signing a missile attached to a Su-24 jet. The projectile is marked as SCALP-EG with the French flag and a mix of the Ukrainian coat of arms with the Eiffel Tower inside. It remains unclear how many French missiles were delivered and when. Ukraine's Defense Ministry referred to the missiles by their British name Storm Shadow, and hinted that the Zelensky-signed projectile was used in a recent strike on two bridges connecting the Crimean Peninsula to Russia’s Kherson Region.
The British-French Storm Shadow / SCALP-EG is an air-launched cruise missile with a firing range of around 250 kilometers (155 miles). It was developed in the 1990s and used in a number of Western military operations, including the NATO intervention in Libya and a strike in Syria that the US, the UK and France conducted jointly in 2018. Kiev has repeatedly used the missiles to target civilian facilities, since receiving an unspecified number of Storm Shadows from the UK. According to Russian officials, they were fired at two civilian plants in the Russian city of Lugansk in May, injuring several people, including six children. On Saturday, Ukraine launched some 12 Storm Shadows / SCALP-EGs at bridges connecting Crimea to the Kherson Region. At least three missiles made it through Russian-air defenses, according to local authorities, damaging two bridges across the Strait of Chongar and the Tonkiy Strait. The attack also damaged a rural school and ruptured a local gas pipeline, leaving the nearby town of Genichesk without supply, according to the Kherson region’s acting governor, Vladimir Saldo. The damaged bridges have also hardly been used for military needs and are purely civilian infrastructure installations, he stressed. The Tour de France is undoubtedly one of the most prestigious and grueling sporting events in the world. Since its inception in 1903, this iconic cycling race has captured the imagination of millions, attracting both dedicated fans and elite athletes alike. Spanning over three weeks and covering thousands of kilometers, the Tour de France has become synonymous with endurance, teamwork, and individual triumph. This essay delves into the history of the Tour de France, tracing its origins, exploring its evolution, and highlighting its significance in the realm of professional cycling.
Origins and Early Years: The Tour de France was the brainchild of French newspaper L'Auto, which sought to boost its circulation through an extraordinary sporting spectacle. The inaugural race took place on July 1, 1903, with 60 cyclists setting off from Paris. Over the course of six stages and 2,428 kilometers, the riders faced immense challenges, traversing rugged terrains and enduring long days in the saddle. Ultimately, Maurice Garin emerged as the victor, etching his name into the annals of cycling history. The Tour's Popularity and Expansion: In its early years, the Tour de France faced numerous obstacles, including financial troubles and controversies. However, its popularity steadily grew as more spectators were drawn to the thrilling competition. The race quickly became a symbol of national pride, showcasing the picturesque landscapes and cultural heritage of France. With each passing edition, the organizers expanded the route, incorporating the daunting climbs of the Pyrenees and the Alps, further testing the cyclists' strength and resilience. Legends of the Tour: Throughout its history, the Tour de France has witnessed the rise of extraordinary athletes who have left an indelible mark on the sport. Names like Jacques Anquetil, Eddy Merckx, Bernard Hinault, Miguel Indurain, and Lance Armstrong have become synonymous with dominance and excellence in cycling. These legends, with their unique styles and strategies, have captivated fans and pushed the boundaries of human endurance, making the Tour de France the ultimate proving ground for cyclists worldwide. Transformations and Innovations: The Tour de France has not been immune to changes and adaptations. Over the years, technological advancements and shifts in cycling culture have influenced the race's dynamics. The introduction of time trials, mountain stages, and intermediate sprints added new dimensions to the competition, demanding versatility from the riders. Moreover, stringent anti-doping measures have been implemented to ensure fairness and preserve the integrity of the sport. Global Impact: Beyond its national significance, the Tour de France has had a profound global impact. The race has consistently attracted participants from various countries, fostering international camaraderie and showcasing the diversity of cycling talent. The Tour's live television coverage has further broadened its reach, allowing millions of viewers worldwide to witness the drama, triumphs, and heartbreaks of the race. Additionally, the Tour de France has inspired the creation of other prominent cycling events, cementing its legacy as the blueprint for modern stage races. The Tour de France stands as a testament to the indomitable spirit of human endurance and the pursuit of sporting greatness. For over a century, this epic race has captivated the world with its thrilling narratives, grueling challenges, and awe-inspiring performances. As it continues to evolve and adapt to the ever-changing landscape of professional cycling, the Tour de France remains an enduring symbol of determination, teamwork, and the relentless pursuit of the yellow jersey. Twenty people have been detained for rioting in Nanterre, a western suburb of Paris, police said on Tuesday. The unrest broke out after an officer killed a 17-year-old man during a traffic stop.
The altercation occurred on Tuesday morning. According to police, the young man was shot after failing to comply with an order and attempting to ram an officer with his car. A video filmed by a witness shows that two officers had stopped a yellow Mercedes AMG. While one officer was standing outside the window and giving orders to the driver, his colleague stood next to him and was pointing a handgun at the driver. The car suddenly moved forward, prompting the officer to fire a single shot. The Mercedes crashed into a pole and the driver died, despite efforts to resuscitate him. The prosecutor’s office said the driver was known for having previously refused to comply with a police order during a traffic stop. Hours after the incident, around 50 people held a protest outside Nanterre police station, BFM TV reported. In other parts of the neighborhood, rioters smashed bus stops, set garbage containers on fire, and torched several vehicles. Interior Minister Gerald Darmanin said an investigation had been launched into the shooting. A separate investigation has been launched on suspicion of attempting to cause harm to a police officer. Paris is an ally and not a “vassal” of Washington, French President Emmanuel Macron said on Wednesday, defending his comments about “strategic autonomy” of the EU regarding the rising tensions between the US and China.
“Being an ally does not mean being a vassal... doesn’t mean that we don’t have the right to think for ourselves,” Macron said in Amsterdam at a joint press conference with Dutch Prime Minister Mark Rutte. Asked for the French position on Taiwan, Macron said Paris supports the status quo, meaning the “One China policy and the search for a peaceful resolution to the situation.” Returning from his trip to China on Sunday, Macron argued that the EU can’t just be “America’s followers,” and that it is not in the bloc’s interest to stoke tensions over Taiwan. “The worst thing would be to think that we Europeans must become followers on this topic and take our cue from the US agenda and a Chinese overreaction,” he told reporters. The remarks earned a swift rebuke from US Senator Marco Rubio, a Florida Republican on the foreign affairs committee, who suggested Washington might leave the EU to handle the Ukraine conflict by itself. Taiwanese Parliament Speaker You Si-kun on Tuesday argued that France had forsaken its motto of ‘liberty, equality, fraternity’, and that advanced democracies should not “ignore the lives and deaths of people in other countries,” adding that Macron’s comments left him “puzzled.” Meanwhile, French Finance Minister Bruno Le Maire said that Macron was “perfectly right to demand European independence and sovereignty,” while the president of the European Council, Charles Michel, noted that “quite a few” leaders of EU countries think like Macron, even though they “wouldn’t say things the same way.” When asked about the French president’s comments on Monday, the US State Department said France is a long-standing ally and that occasional disagreements do not detract from the “deep partnership” with Paris. As for the EU position, a State Department spokesman cited a recent speech by the bloc’s president, Ursula von der Leyen, which described China as “a national and economic security threat,” and said there is “immense convergence” between Washington and Brussels on the matter. |
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