France election: A vote for change

 
Hollande supporters at the Bastille in Paris (6 May 2012) Mr Hollande decided the French people were more concerned by unemployment than immigration

France has voted for change. For only the second time during the Fifth Republic the people have voted to put a socialist in the Elysee Palace. The French left has not won in a quarter of a century.

For Europe too this is a momentous event. For a long time the centre right has held the stage; now a socialist has won and European politics will feel the shudder.

Francois Hollande ran a shrewd campaign. He detected weariness with the high-octane presidency of Nicolas Sarkozy. He made a virtue out of being ordinary. He portrayed himself as a "Mr Normal" - a man to reassure the French public.

During a long campaign, his message was consistent. The economic policies of Nicolas Sarkozy, he said, had failed. Without growth there could be no recovery, he insisted.

Untested

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Francois Hollande in Bonneuil-sur-Marne, Paris, 20 February

Part of Mr Hollande's appeal was that he promised to defend the French social model and save what is called 'French exceptionalism' ”

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With change comes uncertainty both for France and for Europe. Mr Hollande has never held government office. He is untested. He has promised to increase spending whilst balancing the budget, mainly through tax increases.

The truth is that if France is to bring its budget deficit down to 3% by 2013 then 18bn euros of cuts will have to be found next year. How that will be done did not receive much attention during the campaign.

Before the first round of voting Francois Hollande spoke the language of the left. "My true adversary in this battle," he said "has no name, no face, no party... it is the world of finance."

He promised to create 60,000 new education posts. He promised to squeeze the rich. "The soul of France is equality," he said.

During the second round we heard far less of this. By this time he knew he could depend on the votes of the far left. No more offerings needed to be made.

Europe holds its breath

In office, however, he will be cautious and pragmatic, more of a social democrat than a socialist. He knows that the markets will be watching.

He cannot afford to see France's borrowing costs driven up. In reality his room for manoeuvre will be limited. During the campaign, President Sarkozy warned that an Hollande presidency would take France on the road to Greece and indulge in a festival of spending. His advisers are acutely aware of the dangers and they have already held conversations with top business people.

The rest of Europe will hold its breath. He has promised to make growth rather than austerity his priority. In saying this he challenges the German prescription for solving the eurozone crisis.

He simply does not believe that austerity first is working. His first official meeting after he is sworn in will be with German Chancellor Angela Merkel.

He has said that he will re-negotiate the pact that enforces greater discipline in the eurozone. Mrs Merkel has been quite clear: there will be no renegotiation. Mr Hollande says it is "not for Germany to decide the future of Europe".

He will be out to reclaim French influence over the future direction of the EU.

Jump-start for EU

But there are early signs of compromise. German Foreign Minister Guido Westerwelle has said that they "will add a growth pact to the budget (fiscal) treaty".

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Nicolas Sarkozy

Mr Sarkozy made the fatal mistake of underestimating his rival, a man he regarded as useless.”

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Already Mr Hollande has changed the debate in Europe. Germany is more isolated than it was two months ago. The discussion now is how to jump-start the European economy. There is talk of increasing spending on infrastructure projects. The EU might relax its targets for cutting deficits.

Part of Mr Hollande's appeal was that he promised to defend the French social model and save what is called "French exceptionalism".

He has said that for certain people the pension age - only recently increased to 62 - will drop back to 60.

The 35-hour week will stay. It led some to see France as a country in denial, nostalgic for its past and seeking safety from a globalised economy. In office he will have to address the fundamental issue of whether the French way of life with its high social costs is sustainable.

'Get lost'

As for Nicolas Sarkozy, the election became not just about a stagnating economy but about himself. A significant number of French people did not like his style. They did not expect a president to tell an awkward farmer to "get lost". They disliked his aggression and the cascade of ideas.

He came to power promising to modernise France. There was to be a "rupture" with the past. In the event his reforms were modest. He energetically fought the eurozone crisis, shoulder to shoulder with Angela Merkel, but unemployment rose to close to 10%. He led the West's response to Colonel Gaddafi but military campaigns rarely win elections.

He was the most brilliant politician of his generation but as he himself admitted he did not always act as the French people expected of a president. He lacked reserve.

During the campaign he made immigration, the movement of jobs abroad and open borders his big issues. "Europe," he said, "has given in too much to free trade and deregulation." He detected the French people felt insecure.

In the second round of the campaign he focused on these issues that are the natural territory of the far right whose votes he needed. It was a tactic without much prospect of success. The far right mistrusted him; he had spoken their language before and had not delivered.

Sarkozy mystery

In any event, the French people - as Mr Hollande observed - were less bothered by immigration and more concerned with unemployment.

It was one of the mysteries of the latter stages of the campaign that President Sarkozy did not focus more on the dangers of the eurozone crisis and of the risks of turning to an untested leader.

He believed that his relationship with the German chancellor was his trump card. He even considered her coming to campaign for him. The idea backfired.

In the end there was no consistency to his message. Mr Hollande did not seem dangerous. He cast himself in the mould of his mentor Francois Mitterrand. Mr Sarkozy made the fatal mistake of underestimating his rival, a man he regarded as useless.

He was an impulsive, energetic leader who became the latest of a long line of politicians to be destroyed by the eurozone crisis and by his own flaws.

 
Gavin Hewitt Article written by Gavin Hewitt Gavin Hewitt Europe editor

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Hollande in power

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  • rate this
    0

    Comment number 21.

    #20 Arthur Daley

    "Well hope you are right and it is not the 3rd world coming to the EU"

    -- The Greeks paying for their own corruption -- will only be welcomed within the EU.

  • rate this
    +3

    Comment number 20.

    15. mvrs75

    'The Greek election result is good news'

    Well hope you are right and it is not the 3rd world coming to the EU

    Still the IMF have had time to prepare the support because if GreeCCCe leaves the euro which looks inevitable and has from the start all hell will break loose

    Viva FrAAance

  • rate this
    0

    Comment number 19.

    Things must be getting really bad -- even ´Marcus A´ has been misused.

    #15 mvrs75

    "The Greek election result is good news. Especially for Greece. If they default and leave the Euro -- "

    http://www.telegraph.co.uk/news/worldnews/europe/greece/9233670/Greece-tries-to-crack-down-on-fraud-as-mayor-of-Zakynthos-faces-revolt.html

    -- --not for the ´blind´

  • rate this
    +5

    Comment number 18.

    I suspect our pro bail out parties i.e Pasok and N.Democracy will just scrape a majority to form a coalition and accept bail out terms but this will go down very badly with those who voted against bail out. More social unrest on the way in Greece.

  • rate this
    +1

    Comment number 17.

    Hollande will find the enemy has no face indeed, it will be the electorates expectation he can square the circle and that will be a tad tricky

    Will he have to nationalise the French banks with their likely forthcoming debt crisis triggered by brewing events in Greece

    Never mind perhaps he can blame the last administration & say the books are worse than thought, that would be novel

    Goodbye Sarko

  • rate this
    +2

    Comment number 16.

    With the result in France and the result in Greece it will be very interesting to see what the markets do on Monday , it could cause more instability in the eurozone but I have a feeling markets are beginning to realise and think there has to be growth measures otherwise it could be a downward spiral

  • rate this
    +7

    Comment number 15.

    @2
    The Greek election result is good news. Especially for Greece. If they default and leave the Euro they'd be infinitely better off than by staying in and accepting the diktats of the undemocratic EU and the odious IMF (which robbed Africa blind in the last 40 years).

    The resistance fight against the wealth-destroying Euro has begun. Only the rich ever benefitted anyway.

  • rate this
    +10

    Comment number 14.

    Great to see the dirigiste-loving France spicing things up by wanting to shatter the European austerity consensus. Let's hope the rest of Europe now follows suit!

  • rate this
    0

    Comment number 13.

    How its possible to keep a 35 hour week , a retirement age of 60 in a competitive global economy and ageing world is difficult to fathom and to fund this by greatly increasing tax on corporations and individuals which risks businesses and entrepreneurs leaving France en masse defies logic , I doubt Mr Hollande is a magician . Now he is in power he will have to be realistic .

  • rate this
    +3

    Comment number 12.

    Well, some say that this will cause an exodus of the idle and undeserving rich to England. I think I'll look at moving to France myself.

  • rate this
    +14

    Comment number 11.

    "now a socialist has won and European politics will feel the shudder."


    Shudder? Not leaning to the right, I hope, Gavin?

    Why should a little more sympathy for the people who do the work and don't milk the system be so out of place? In the UK or elsewhere?

    .

  • rate this
    +9

    Comment number 10.

    Whoops! Although no fan of Sarkozy this result is the loose thread that will be pulled until the Eurozone unravels. How can the German taxpayer be expected to keep pumping billions in to propping up the ECB while France, and no doubt Greece post their election results, go on a spending spree they can ill afford?

  • rate this
    +2

    Comment number 9.

    The message is clear - people will not put up with austerity if growth seems to be on the back burner. The free market has not produced the growth that Markosey and Osbourne expected. Instincts that growth stimulation by governments is what is needed has at last got a voice. This is true for damaged economies, but some are voting themselves beyond saving./

  • rate this
    +6

    Comment number 8.

    A real opportunity for France to take the leadership of the EZ and move it away from the self defeating programme of austerity gripping most countries in the EU. Miliband needs to track Hollande for the way forward for the British left. These are indeed interesting times.

  • rate this
    +7

    Comment number 7.

    Great!! A major political human body shield for the super-wealthy corporate elite has bitten the dust. Thank God. The financial mkts, like fire, are great servants but terrible masters. They must be treated with respect but ultimately controlled and never pandered to. The role of the state is central and the role of markets important but separate. Get them confused and you end up with fascism.

  • rate this
    0

    Comment number 6.

    Gavin
    France has not voted for change. France is a very conservative (Small c) country that dislikes change. Apart from Sarkozy's personality his problem was that we was seeking to drag France kicking and screaming into the real world. Hollande has promised the country that they can continue to live as if they were somehow cut off from the that world, that they can continue to retire at 60, etc!

  • rate this
    -3

    Comment number 5.

    What change?

    Sarkozy did not much at all. At least not with a lasting effect in France. Does change means that Hollande should show more initiative in the long perspective? Or does it mean that the French just got rid of Sarko?

  • rate this
    0

    Comment number 4.

    The hangover begins tomorrow... There is a problem with the notion that the answer to huge debts is more wild spending. No hangover cure in sight -- only more hangovers to come as desperate, unintelligent people flail wildly, surprised their "magic wands" are not so magic... And then it will be back to Square 1, with many years lost. Tu l'as voulu, Marine Le Pen! This is very much your (un)-doing.

  • rate this
    +8

    Comment number 3.

    The people have spoken in France, though many will not welcome their choice. There must be another way, other than the economy stupid. Europe will find a way to maintain its way of social equilibrium in favor of the majority who express their preferences for fairness and justice whenever they are consulted democratically. German austerity will not dominate the eurozone because it can not do so.

  • rate this
    +4

    Comment number 2.

    Whilst this win will slightly destabilise the Euro's future it is the Greek results that could really rock the boat. If the Greeks say no to austerity and bail out then others will follow. I hope the UK really does have a viable plan for Euro collapse. It's getting ever more likely even if it is not what we might want.

 

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