Showing posts with label Nicolas Sarkozy. Show all posts
Showing posts with label Nicolas Sarkozy. Show all posts

Wednesday, January 11, 2012

Obama, Sarkozy and Taxing Wall Street


by Jeff Cohen
 
With U.S. media obsessing on the fight here at home among conservatives vying to become president, most of them missed some big news about France, which already has a conservative president.  This week, French President Nicolas Sarkozy announced that he would take the lead – even go it alone within Europe, if need be – in introducing and pushing a Financial Transaction Tax in his country.
 
That’s right – the conservative president of France wants to tax the financial traders and speculators.

Referring to the tax as a “moral issue” and blaming deregulation and speculation for the global economic meltdown, Sarkozy has said that traders must “repay for the damage they have caused.”

What does it tell us about U.S. politics that the conservative president of France – on this issue and others – is way to the left of President Obama?  The U.S. president has not publicly promoted a Wall Street transaction tax (even though US financial institutions, not the French, were largely responsible for the global financial crisis).

Sometimes called a “Robin Hood tax,” a Financial Transaction Tax is endorsed worldwide by everyone from conservative European leaders to the Pope and Archbishop of Canterbury to Bill Gates and Ralph Nader.  The tax is a tiny per transaction fee and would barely be felt by middle-class investors or their pensions or 401(k)’s, but it could raise big bucks from high-volume investors and impose a brake on the kind of speculation that tanked the world’s economy. 

French President Sarkozy keeps explaining to the people of France and Europe that a small transaction tax raises billions for countries facing deficits.

Wouldn’t it be something if President Obama went to the American people with such a deficit proposal, instead of putting Medicare on the chopping block?

President Sarkozy invokes the “moral issue” of financial institutions repairing the damage they caused.  What a shock it would be to see President Obama aiming the “moral issue” at Wall Street profiteers and demanding repair of damage, instead of rewarding them with top White House jobs.

After failing to get resistant allies among European countries to join him, Sarkozy is going forward on his own – declaring yesterday: “If France waits for others to tax finance, then finance will never be taxed.”

Can you imagine Obama standing up to a resistant Congress on a Wall Street transaction tax?  He can’t even stand up to his own advisers on the issue, according to Ron Suskind’s insider book on the Obama White House, “Confidence Men.”  Suskind reports that Obama briefly embraced the tax and declared at one meeting: “We are going to do this!”  But after Obama’s top economic adviser (and Wall Streeter) Larry Summers criticized the tax, the idea was buried at the White House.

That was back in 2009.  But the idea is still alive on Capitol Hill.  A couple months ago, Sen. Tom Harkin and Rep. Peter DeFazio introduced a Financial Transaction Tax bill in Congress that would easily raise $350 billion over 10 years.  Rep. John Conyers introduced a similar bill last year – it would tax Wall Street to fund federal jobs programs.

A Wall Street transaction tax is backed by National Nurses United and other unions.  It’s popular with the U.S. public, and would be even more popular if Obama were to campaign for it in 2012. RootsAction.org has gained 50,000 signatures in support of the tax.

You can add your name here to those pushing Obama to (re)embrace the Wall Street tax.

And don’t get me wrong about President Sarkozy of France.  He’s no great humanitarian.  But he is facing an uphill reelection battle this year and the conservative president understands how popular a financial tax is with voters.

Facing reelection this year, maybe it’s time President Obama came to that same understanding.

Wednesday, December 22, 2010

The French State Prepares for Class War

(Don't worry, it will happen here soon, too.--jef)


Sarkozy's Strategy of Violence
By LARRY PORTIS

"Bring the War home.” Here was a slogan that resonated throughout the Vietnam War era. It was a good formula, and temporarily successful in that it expressed and reinforced combativeness on the part of those who contested the war. The idea was that the anti-war movement must force the state to confront, within the United States and other western, industrialized countries, a mirror image of its imperialist actions abroad.

In France, today, this idea is taking a surprising turn. It is the French president who is bringing the war home.

One of the particularities of France has been that the propensity to go out into the streets to fight oppressive institutions is accepted as part of a long established political tradition. This is still the case. But another particularity of this country is the tradition of state repression. If the contemporary history of France is punctuated by revolts and revolutions, it should not be forgotten that bloody crushing of popular movements followed the events of 1789, 1830, 1848, 1871 and 1936. Overseas, the French military carried out genocidal “pacifications” of populations in Indochina, Morocco, Algeria and Madagascar that have been emulated by other imperialist states, with the United States in the lead.

In a country once called the “political laboratory of the world” (by Karl Marx), the present French government is quickening the pace towards the creation of a “police state” in which the forces of repression are not only centralized but also militarized in the strictest sense of the word. The French state is now perfecting its police power in dealing with “civil disturbances” by militarizing population control.

There are two models for this effort. The first is the USA PATRIOT ACT that centralized “intelligence” agencies under the auspices of the Department of Homeland Security and erased the distinction between international intervention and domestic policing. The second is the organization of the national security forces in Israel, where the operative principle is the occupation of hostile territory.

The most serious step in the centralization and militarization of the police occurred in July 2010. It was then that the National Assembly enacted into law Nicolas Sarkozy’s proposal to give the Ministry of the Interior financial control over the famous Gendarmes, traditionally considered to be part of military defense, but in reality acting outside the cities as a law enforcement force.

From 1921, the Gendarmerie gained special status as a special military corps with an ambiguous kind of autonomy. They were not called upon to engage in crowd control or in real military operations. They are part of the military establishment, but not the regular army. In general, the gendarmes have enjoyed a reputation as being relatively independent of political interference. Since the 1960s—and a series of incredibly popular films staring the beloved Louis de Funes—the gendarmes entered contemporary folklore as the most respected law enforcement agency in France.

But now their independence is seriously compromised, and so will be the respect in which they are held. Not only has Sarkozy proposed that a contingent of Gendarmes be sent to Afghanistan, his incorporation of them into the police means that the distinction upheld until now between public service and repression of the population is effectively obliterated.

Sarkozy has also instituted a quota system—a set of quantitative performance standards—that has pushed the police to arrest people in ever-increasing numbers.

Now, in France, people can be held in detention for 24 to 48 hours without being formally charged, a practice called garde à vue (provisional detention). The idea is that, during this time, the police will be able to question and investigate a suspect without interference. In other words, in the absence of any principle of habeas corpus, detention is used to extract confessions or to simply punish those who show lack of respect for police authority.

In recent years the practice has reached such proportions that citizens groups have been created to act against it. In 2009, approximately 900,000 people were detained in this way (out of a population of 65 million). This is almost double the number so detained during the year previous to Sarkozy’s election in May 2007. It is frequent that the police beat people who express indignation when they are arrested or incarcerated. It is invariably claimed that they violently resisted, injuring a policeperson, who then files a complaint against the real victim. Protesting by-standers also frequently receive this treatment. As Amnesty International observed in its annual reports of 2005 and 2009: “Amnesty International must conclude that, at the present time in France, law-enforcement agents enjoy practical impunity.”

The connection with Israel is paramount in Sarkozy’s strategy. Although no official pronouncements have been made, a highly respected weekly newspaper, Le Canard enchaîné, has reported rumors from the ranks of French internal security forces that the Israeli national police, the 26,000-member-strong Mishtara, is now the model, given its fusion of population control, policing powers, intelligence activities and counter-terrorism operations.

Already in 2005, after days of insurrection in some French suburbs, Israeli experts in urban counter-guerilla operations reportedly visited Paris, presumably at the behest of the French authorities (Sarkozy was then Minister of the Interior). In June 2010, it was reported that officers of the Israeli army participated in combat simulations in France and that their French counterparts would soon go to Israel “for combat training in inhabited zones”.

Israeli technology is another dimension of this collaboration, although it is not yet considered that the French population is ready to accept some of the more interesting innovations. For example, the Shofar (Hebrew for a trumpet made of a ram’s horn), an Israeli “sound cannon” that emits a noise comparable to a fighter jet flying directly over your head (145 decibels) was rejected. Colonel Didier Quenelle of the Gendarmerie in the Saint Astier (Dordogne) training center explained to Hacène Belmessous in January 2010 (cited in Belmessous’ book Opération Banlieues, 2010) that he refused to test the device. However, Quenelle’s new superiors have not ruled it out. “We concluded that many demonstrators of different ages would be injured and that the capacity of our fellow citizens to accept such a tool seems problematical,” it was said in an official report, which nevertheless went on to call for tests. “Rubber bullets”, on the other hand, have been accepted.

Why is the French government gearing up for combat operations in cities? In part it is due to the phobias and activism of Nicolas Sarkozy, although the structural instability of the French economy and expected social explosions—such as those breaking out in Greece, England, Ireland and elsewhere—underlie the general situation.

In fact, Nicolas Sarkozy has now been responsible for law enforcement in France for more than eight years. And since he became Minister of the Interior in 2002, police brutality has been increasing. It is therefore not surprising that “security” issues are central in his policies. Ignoring any criticism that he is responsible for the growing insecurity, his tactic is to claim that crime is on the increase and that penalties must be increased. For him, those who protest against police actions are irresponsible at best, and likely part of the problem in some more substantive way.

Here is a sketchy chronicle of some of Sarkozy’s more recent exploits.

On October 26, 2005, still minister of the interior, but already campaigning for the presidency, Sarkozy made a surprise visit to the suburban town of Argenteuil to visit the local police station. Objective: to show his unqualified support for the police. Finding himself hassled by 200 young residents, but surrounded by riot police guards, he declared to the ubiquitous cameras that he was going to get rid of this “racaille” (literally “scum”), meaning the young people of the suburbs where working-class people are concentrated including, naturally, a high proportion of immigrant workers of different generations and their children.

The next day, in Clichy-sous-Bois, another suburban community, two teenagers were electrocuted trying to hide from police behind a wire fence enclosing an electrical power transformer. The police claimed they were investigating thieves but did not chase the boys, a claim denied by witnesses whose testimony was subsequently confirmed. The boys were playing soccer when approached, and ran because of a generalized fear of the police and the all-too-frequent interrogations inflicted on young males in the neighborhood. Six days of rioting ensued during which the police and residents engaged in continuous clashes.

After Sarkozy was elected president on May 6, 2007, three nights of rioting followed in cities throughout France during which 1,400 automobiles were burned, store windows were smashed and other damage occasioned.

On November 25, 2007, riots broke out in Villiers-le-Bel, another suburb north of Paris. Two nights of combat between the police and young residents followed the deaths of two teenagers on a mini motorcycle when a pursuing police patrol car ran into them. (It later came out that the police had lied about the speed their vehicle was traveling when it ran over the teenagers.) Around 100 police and firemen were injured. Shots were fired at the police from high-rise buildings.

In response to the events of the previous November, on February 18, 2008 33 people were arrested at dawn by no less than 1,100 police of different types who converged on a residential complex composed of high-rise apartment buildings. The consequences are telling for the pursuit of justice. Six months later, in July 2010, five of the 33 young people arrested were sentenced to 3 to 5 years in prison on the strength of testimony from one anonymous informer who received a monetary bounty for his or her efforts.

But here a paradox must be mentioned. After all, Sarkozy was elected by 54 per cent of those voting in the May 2007 election. And there were many people in the suburbs believing Sarkozy would take action to make their neighborhoods more secure. In reality, he was largely responsible for this violence. What people didn’t understand is that Sarkozy needs to be able to point to insecurity in order to justify his repressive and regressive policies.

This has now changed. Sarkozy is less popular with such people, but it is too late. Now he has an absolute majority in the National Assembly, where his proposed laws and policies are rubber-stamped.

Yet even before the election Sarkozy was unpopular with people in general. After five years of Sarkozy as Minister of the Interior—or the premier flic (tr. “top cop”) in France—most residents in the poor suburbs already understood. The 35 per cent who voted for him there certainly helped push him over the top and win the election. But the others detest him to the point that Sarkozy has been unable to visit their neighborhoods for fear of causing riots.

This is now true everywhere in France. Wherever Sarkozy goes, poor suburb or not, the area he visits is emptied and sealed-off from the population. When a crowd is needed, people are generally recruited from his political party—the UMP, Union for a Popular Movement—and the participants are given “invitations” that allow them to go through police barriers! Everyone else—quite rightly considered potential protesters—are held blocks away behind police barricades. Tear gas and clubs are used in the event of attempts to break through the barriers.

The demonstrations against the reform of the retirement system in October and November 2010 provided additional evidence of militarizing urban population control. In Lyon, the second largest city in France, scenes of guerilla warfare were enacted by hundreds of robocops pitted against adolescents from the suburbs who came especially to fight the police. Estimates range from 1,300 to 1,600 youths of both sexes present at any one time who joined the tens of thousands of people protesting against the regressive reforms. It appears as if the government wishes to provoke this combat so as to advance military control over the population.

At times during these events, the police completely enclosed the central square in Lyon—the Place Bellecour—refusing to let people leave. The technique of sealing off areas has also been used in Paris and other cities in recent demonstrations. Sometimes people, unable to leave the area, are forced into underground subway stations, only to find riot police waiting for them when they arrive.

The night of June 24, 2010, Sarkozy made an unannounced midnight visit to the suburban city of St. Denis (north of Paris) with television cameras in tow for the best photo ops. A young (21 years old) black man happened to see him and immediately called out: “Va te faire enculer, connard! C’est chez moi ici!” (tr. “Go fuck yourself, asshole! This is where I live!”). Police guards immediately jumped on him. The young man’s nose was broken and he was arrested. A cameraman working for one of the pubic television channels was also struck when he tried to film the scene.

It is possible that Sarkozy was not displeased with this incident. The insult proffered him by a young black man with (it was later learned) an Arabic name can be presented as more evidence that young residents of the “ethnic” ghettoes are cultural (if not “racial”) barbarians having no respect for institutions and their representatives. Moreover, the young man openly claimed that his neighborhood is off-limits to the French president. So much the better, Sarkozy may have thought: it justifies his crusade to momentarily capture territory and create the illusion of pacifying the rabble.

And this is the whole point: Sarkozy and his government are re-conceptualizing the territory of France into occupied and unoccupied zones. Like other heads of state, he needs a permanent war against an ill-defined but stigmatized enemy in order to justify his authority. It is significant that military planners are now re-evaluating the role of the French army in the “battle of Algiers” in the late 1950s. Long considered a model for Israel in the Occupied Territories of Palestine, and for the United States in Iraq, the lessons of the murderous occupation of the Casbah in Algiers are now taken positively by strategists in France, for France.

What is really the problem in the French suburbs? Well, it was announced on December 14, 2010 that 43 per cent of young males and 37 per cent of young females in the suburban cities are unemployed. Here is where “ethic” youth (overwhelmingly born in France) with few future prospects are concentrated, and this is the population Sarkozy has designated as scapegoats.

In 2002, Sarkozy ended the policy of the previous (socialist) government of providing more police presence in the neighborhoods with the objectives of integrating the police into the local community and reducing tensions. Instead, Sarkozy has pulled police out of the suburban ghettos, preferring to make punitive military “incursions” into them. By now, it should be clear why.

Sunday, October 24, 2010

France Erupts! Contrasting with the US (2 articles)

Sarkozy Under Siege
By PHILIPPE MARLIÈRE

When he entered the Elysée palace in 2007, Nicolas Sarkozy dreamed of a glorious destiny. Enthusiastic commentators predicted that his casual populism would revamp the Bonapartist right, and that his Gallic brand of neoliberal policies would sell the “American dream” to a mistrustful population. Things have not gone according to plan. Sarkozy wanted to be the French JFK; today he looks more like Louis XVI awaiting trial in 1793. He may escape the guillotine, but his presidency is now under siege.

The French are deeply unhappy with the way they have been governed, but their main grievance is about pension reform, which is seen as a cynical ploy to make ordinary people work more for inferior entitlements, while bailed-out bankers and the rich get tax rebates and continue to enjoy the high life. Over the past month, six national demonstrations have gathered together an estimated average of 3.5 million per action day. The latest, on Tuesday, was again a big success.

The movement is popular: 69% of the nation back the strikes and demonstrations; 73% want the government to withdraw the reform. And high school pupils have now joined the fray. Over 1,000 high schools are on strike as the youngsters take to the streets to protest against mass unemployment and the raising of the retirement age. The government has patronisingly labelled them as “manipulated kids”, but these comments have backfired and served only to galvanise the young, who have hardened their resistance and taken further interest in the reform. When interviewed by the media, pupils come across as articulate and knowledgable. Parents worry about their children's future, so they will not stop them from striking.

In France, strikes and demonstrations are seen as a civilised and effective way to enact one's citizenship. Students are expected to join marches from an early age, receiving by the same token a “political education”. France's youth have always scared governments because of their radical potential. Student demonstrations of late have been invariably popular because people know that the young have been badly hit by unemployment over the past 30 years.

University students are preparing to strike as well. Sarkozy, like Louis XVI in 1789, does not seem to have grasped how volatile the situation has become. He should know better. Since May 1968, all governments have been forced on the ropes every time youngsters have entered a social movement. This time it could prove crucial in helping to reach a tipping point; a stage in the conflict where the balance of power switches from the government toward those opposing the pension reform.

Last week, Sarkozy had to send in riot police to reopen fuel depots blocked by strikes in several places. Yet several hundred filling stations had to shut because they had run out of supplies. Lorry and train drivers are also starting strike actions.

How can the current situation be interpreted? Undoubtedly, the rebellion seems durable and runs deeper than the question of pensions. The reform has triggered a web of collective actions that are now spreading fast. Discontent is fuelled by low incomes and unemployment, but also by the impact of the crisis on people's daily life, the arrogance of the Sarkozy presidency, corruption cases and police brutality.

There is a sense of moral outrage at the imposition of a neoliberal medicine to cure an illness caused by the same neoliberal policies. The French are not hostile to reforms: they just demand those that redistribute wealth and allocate resources to those who need it the most. Any comparison with May '68, however, may be hasty. Then, France was experiencing a period of economic prosperity. Today, events occur in the context of a deep economic depression. This is why the political situation is potentially explosive. Radicalised workers and youngsters are forcing the unions to up their game. The normally toothless Socialist party has pledged to return the retirement age to 60, should it come back to power in 2012.

One can envisage two possible scenarios. Opposition to the reform hardens, in which case Sarkozy may have to water it down or even withdraw it. This would mark the first major popular victory in Europe against the post-2008 neoliberal order. Alternatively, Sarkozy stays put and imposes a deeply unpopular reform, in which case the political price to pay for the incumbent president would be very high, should he decide to run again in 2012.

*****

Why French Protestors Have It Right 
By MARK WEISBROT

The demonstrations that have rocked France this past week highlight some of its differences from the United States. This photo, for example, shows the difference between rioting in baseball-playing versus soccer-playing countries. In the U.S., we would pick up the tear gas canister and THROW it – rather than kick it -- back at the police.

More importantly the French have decided to take to the streets in the millions to defend hard-won retirement gains – including large-scale strikes and work stoppages. French populist rage is being directed in a positive direction, unlike in the United States where it is most prominently being mobilized to elect political candidates who will do their best to increase the suffering of working and middle-class citizens. (It must be emphasized, since the media sometimes forgets to make the distinction, that only a tiny percentage of France’s demonstrators have engaged in any kind of property damage and even fewer in violence, with all but these few protesting peacefully.)

I have to admit it was perplexing to watch the French elect President Nicolas Sarkozy in 2007, a man who campaigned on the idea that France had to make its economy more “efficient” like America’s. In reality, he couldn’t have picked a worse time to peddle this mumbo-jumbo. The housing bubble was already bursting in the United States and would soon cause not only our own Great Recession but also drag most of the world economy into the swamp with it. So much for that particular model of economic dynamism.

But Sarkozy had a lot of help from the major media, which was quite enchanted with the American model at the time and helped promote a number of myths that formed part of his campaign. Among these were the idea that French social protections and employment benefits were “unaffordable in a global economy,” and that employers would hire more people if it were easier to fire them, and if taxes were cut for the rich.

Sarkozy has recently abandoned one of his most politically unpopular tax cuts for the rich, but there may be others. But he had also promised not to raise the retirement age for the public pension system. This has contributed to the mass outrage at his current proposal to raise it from 60 to 62, for those taking the reduced benefits, and from 65 to 67, for full benefits. (In the United States Social Security system, most people opt for the reduced benefit that is available beginning at age 62; full benefits are available, for those born after 1959, at 67.)

Once again most of the media thinks the French are being unrealistic, and should just get with the program like everyone else. The argument is that life expectancy is increasing, so “we all” have to work longer. However this is a bit like reporting half of a baseball score (or soccer if you prefer). On the other side is the fact that productivity and GDP also increase over time, and so it is indeed possible for the French to choose to spend more years in retirement, and pay for it.

France’s retirement age was last set in 1983. Since then, GDP per person has increased by 45 percent. The increase in life expectancy is very small by comparison. The number of workers per retiree declined from 4.4 in 1983 to 3.5 in 2010. But the growth of national income was vastly more than enough to compensate for the demographic changes, including the change in life expectancy. The situation is similar going forward: the growth in national income over the next 30 or 40 years will be much more than sufficient to pay for the increases in pension costs due to demographic changes, while still allowing future generations to enjoy much higher living standards than people today. It is simply a social choice as to how many years people want to live in retirement and how they want to pay for it.

If the French want to keep the retirement age as is, there are plenty of ways to finance future pension costs without necessarily raising the retirement age. One of them, which has support among the French left – and which Sarkozy claims to support at the international level -- would be a tax on financial transactions. Such a “speculation tax” could raise billions of dollars of revenue – as it currently does in the U.K. – while simultaneously discouraging speculative trading in financial assets and derivatives. The French unions and protesters are demanding that the government consider some of these more progressive alternatives.

It is therefore perfectly reasonable to expect that as life expectancy increases, workers should be able to spend more of the lives in retirement. And that is what most French citizens expect. They may not have seen all of the arithmetic but they can see intuitively that as a country grows richer year after year, they should not have to spend more of their lives working. An increase in the retirement age is a highly regressive cut that will hit working people hardest. Poorer workers have shorter life expectancies and would lose a higher proportion of their retirement years. Workers who have to retire early because of unemployment or other hardships will take a benefit cut as a result of this change. And of course this cut would not matter to the richest people who do not rely on the public pension system for most of their retirement income.

France has a lower level of inequality than most of the OECD countries and is one of only 5 – out of 30 OECD countries -- that saw inequality decrease from the mid-80s to the mid-2000s. It also had the largest decrease in inequality in the group, although all of it was from the mid-eighties to the mid-nineties. The country has until now resisted at least some of the changes that have rolled the clock back for working and especially low-income citizens in the high-income countries. The European authorities (including the European Commission, European Central Bank, and International Monetary Fund) are currently accelerating these regressive changes in the weaker Eurozone economies (e.g. Greece, Spain, and Ireland). All of these institutions and many politicians are trying to use the current economic problems of Europe as a pretext to enact right-wing reforms.

Polls show more than 70 percent support for France’s strikers despite the inconvenience of fuel shortages and other disruptions. The French are already sick of right-wing government, and that is also part of what is generating the protests. France has a stronger left in than many other countries, and one that has the ability and willingness to organize mass protest, work stoppages, and educational efforts. They are fighting for the future of Europe, and it is a good example for others. Hopefully, here in the United States, we will be able to beat back any proposed benefit cuts to our much less generous Social Security system, that are looming on the horizon.