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Power and Interest News Report (PINR)
http://www.pinr.comcontent@pinr.com
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25 August 2005
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Intelligence Brief: French Energy Policy
Drafted By: Federico Bordonaro
http://www.pinr.com French Prime Minister Dominique de Villepin held an important speech on August 16, 2005. Apart from addressing his projects to tackle unemployment, he explained to citizens why the present oil crisis is destined to last and, more importantly, he briefly illustrated the new French energy policy. The importance of this speech is two-fold.
First, de Villepin is launching a strategy aimed at energy independence (involving the state's intervention in the national economy), which appears to be in line with his Gaullist legacy. Second, he never mentioned in his speech launching a common European energy policy.
These facts signal that the effects of France's rejection of the E.U. Constitutional Treaty are having a deep impact on the country's politics, and that sovereignist discourse is being incorporated by the neo-Gaullist majority. Therefore, we now see a shift in Paris' industrial policy -- although along well-known Gaullist lines -- which makes the formation of an authentic European political union even more difficult.
De Villepin's Speech and France's Energy Policy
Speaking at Matignon, de Villepin announced that his government is preparing a series of new measures for this fall aimed at spurring economic growth. He recalled with confidence some recent positive economic data as evidence that the economy is back on a more favorable growth trend. The French prime minister did not provide details of the program, but said it would include targeted spending of revenues generated from the government's privatization projects.
In order to fight unemployment, which is around ten percent and considered unacceptable by most of the public, de Villepin introduced in June 2005 a tough measure: employers will be allowed to fire new staff without justification at any time during an initial two-year period of their hiring. This decision sharply contrasts with traditional French labor guarantees, and it means that the neo-liberal agenda pushed by Interior Minister Nicolas Sarkozy is growing in influence and popular reception.
Summarizing the head of government's speech, the daily newspaper Le Monde said the challenge for de Villepin is creating a vast, industrial and commercial re-specialization of French products, while cutting taxes for small and medium enterprises.
However, the core of de Villepin's speech was, undoubtedly, on energy security.
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complete report at link
Report Drafted By:
Federico Bordonaro
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