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Can Tony Blair stop the war?

To some, he is a skilled power player. Others call him Bush's poodle. In the make-or-break weeks ahead, he could shape history -- or become its victim.

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Can Tony Blair stop the war?

Fielding questions at his monthly, American-style press conference last week, Britain’s Prime Minister Tony Blair spent an hour defending his firm alliance with President Bush on the possible need to wage a preemptive war on Iraq. Blair’s controversial stance, along with his commitment to sending 40,000 troops, has dominated the public debate in Britain in recent weeks, with increasing signs that his staunchly pro-American position is exacting a political price at home.

Speaking from the podium, Blair tried to say all the right things, soothing British anxiety about the war by stressing it was not inevitable — “of course, no one wants conflict” — yet at the same time holding firm on the goals. “Disarmament,” he said, “is inevitable.”

Blair talked and talked and talked, responding thoughtfully to 26 war-related questions. Yet despite all the talk, and especially for someone who sees himself as a master communicator, Blair is not scoring many debating points. He still faces a jittery British public, most of whom, according to a recent survey, think the real motivation for war is to seize control of Iraq’s oil. Longtime allies France and Germany have just abandoned him by coming out strongly against the war if weapons inspectors cannot uncover obvious proof of Saddam Hussein’s misdeeds. And worse for Blair, there’s a rebellion brewing within his own Labour Party, including some of his own cabinet members who fear that British involvement in Iraq would prove catastrophic for the party, not to mention the country.

“This war may be a bigger test for Tony Blair than it is for George Bush,” says Simon Henderson, a London-based adjunct scholar of the Washington Institute for Near East Policy.

For now, Blair is hoping that arms inspectors will be able to deliver clear proof of material breach and prompt the U.N. Security Council to pass a second resolution authorizing war against Iraq, and that a sizable international coalition will then sign off on the military efforts.

“If that’s the case, the war opposition at home will sit on its hands,” says Martin Kettle, columnist for the Guardian, a liberal London newspaper. British polls, like those in the United States, show a vast majority want clear U.N. support for war before the country agrees to fight — especially since Blair has committed most of Britain’s army to the war effort.

The worst-case scenario for Blair, though, features the U.S. opting to go it alone against Iraq without the U.N.’s blessing, thereby forcing Blair to make perhaps the most difficult decision of his political career. “He’d be a fool to go along,” says Kettle. But if he did, “I think it’d be the beginning of the end for him.”

That grim possibility grew much more vivid this week when France and Germany announced they were united against the war and might block any attempt by the White House to win an authorizing resolution at the U.N. By using their power on the Security Council to block U.N. approval, both countries could put Blair in a terrible bind and create real havoc for the White House.

Blair represents the linchpin for the United States’ hopes of building an international coalition for war. Even with Blair onboard, the U.S. so far has not mustered much of a coalition. The Security Council — including permanent members Russia and China — appears overwhelmingly opposed to military action at this time, based on the current evidence against Saddam. Turkey, usually a reliable U.S. ally, is balking, and most governments in the Arab world have warned that hasty action could have dire repercussions. If Britain bails, the White House cannot even pretend to have the backing of an international alliance.

That’s why if there’s anyone outside Bush’s inner circle who might actually have veto power over the war today, it’s Blair. Polls show that a strong majority of Americans badly want allies to support a U.S. strike on Iraq. If in the coming weeks Blair, feeling immense political pressure at home, were to emerge from 10 Downing Street and announce he could not support a war with Iraq or, specifically, the timetable the U.S. was using, the decision could have historic repercussions.

“If Blair pulled out of military action, the U.S. would find it very hard to go to war,” says Nile Gardiner, a former foreign policy aide to Prime Minister Margaret Thatcher. “America would have to go to war without any allies, and I don’t think Washington has public support for that. In a way, Blair holds the key to the war.”

Given Blair’s stated determination to maintain Britain’s “special relations” with America, longtime Blair-watchers doubt the prime minister would back out on Bush now. But for those anxious about an invasion who are trying to piece together a scenario where war could be averted, Blair’s role holds some tantalizing possibilities.

Even though he’s a philosophical soul mate of Bill Clinton who also moved his left-leaning party to the middle, Blair’s staunch loyalty toward America’s conservative Republican president on Iraq has caught some by surprise — including a large chunk of his own party.

But listen to Blair long enough and it’s obvious that, like Bush, he’s convinced that if Saddam is not disarmed, the Persian Gulf dictator will pose a grave threat to the West for years to come. And Blair, a man of strong Christian beliefs, also seems determined to help liberate the Iraqi people from Saddam’s tyrannical grip.

But politics are clearly at play as well. The reality for British prime ministers today is they don’t have much choice but to follow U.S. foreign policy, particularly on monumental issues like war and peace.

“Tony Blair knows that unless Britain does become involved and supports the U.S. on Iraq, Britain loses its position at the top table of world diplomacy,” says Henderson. “We’re only there as allies to the United States. Otherwise, apart from a permanent Security Council seat, we’re [lumped together] along with Germany and France and other people who dither.”

Diplomatically, nothing would upset Blair more than seeing Britain confined to the international sidelines, or himself being labeled a pro-European dove. “Blair’s alliance with Bush is not based on an instinctive, pro-American gut feeling,” notes Gardiner. “Blair’s a very clever politician and understands maintaining strong ties with the United States is crucial in terms of Britain’s power and prestige. If Britain didn’t fight alongside the U.S. and it went into Iraq, it would be catastrophic for the ‘special relations,’ and Blair understands that.”

“Special relations” is a phrase coined after World War II to describe the importance of the U.S.-Britain alliance, and it highlights how Britain, often alone among the European powers, routinely sides with the United States. That’s why, on paper, France and Germany’s refusal to back a preemptive war is not surprising. But their move takes on added importance with regard to a possible second U.N. resolution that so many American and British citizens want as a precursor for war.

There was a feeling early on in the discussion of war that because the U.S. seemed so committed to attacking Iraq regardless of international opinion, the smart move for Blair was to embrace Bush and in that way increase Britain’s leverage in the end.

Blair supporters insist the strategy has worked, noting that only after Blair prodded him did Bush agree to take his case against Saddam to the U.N. and urge the return of weapons inspectors to Iraq. Blair defenders also highlight the upcoming summit scheduled for the end of the month at the Camp David presidential retreat, where Bush and Blair will meet one-on-one to discuss Iraq.

“The United States sees Blair as such an important player, they need to consult him, to give him a military say, whereas no other leader has a say,” says Gardiner, currently a visiting fellow of Anglo-American foreign policy at the conservative Heritage Foundation in Washington.

It all proves that Britain can still “punch above its weight,” as the local saying goes, meaning the country’s influence on the world stage far surpasses its military strength. And for a nation whose empire once stretched across the entire globe, that notion of still being in the mix has deep appeal.

Blair’s arguments for war would sound familiar to American ears, since they so closely mirror the White House talking points: By maintaining weapons of mass destruction, Saddam has been in violation of U.N. disarmament resolutions for years; he poses an immediate threat to the West; the U.N.’s authority is being tested; rogue states should no longer be allowed to nurture terrorism.

But domestic critics, some of whom dismiss Blair as Bush’s “lap poodle,” argue that Washington has simply been paying lip service to London, and that Blair’s contributions have had little or no impact on the actual war plans. They doubt that Blair’s third-way approach will be taken seriously at the Pentagon when it comes time to decide whether to invade.

But that may underestimate the subtle, and crucial, nature of Blair’s role. The White House has continued its troop deployments to the region and escalated its rhetoric, warning of “time running out on Saddam Hussein”; France and Germany have expressed adamant opposition to war. Blair, meanwhile, has seemed to act sometimes as a buffer, other times as a bridge, in Euro-U.S. relations.

In recent weeks the prime minister has been trying to soothe British fears. His foreign secretary, Jack Straw, downplayed the odds of war, placing them at 60-40 against. Blair recently urged U.N. inspectors be given “time and space” to do their job. And in comments on Tuesday, apparently in answer to Germany and France, he emphasized that the imminent threat of war may be, in itself, essential to avoiding war.

“The one thing that is very obvious,” he said, “is that as a result of the military buildup and as a result of the determination to see this thing through, the regime in Iraq and Saddam are weakening … and that is why we have to keep up the pressure every inch of the way.”

Critics, however, worry that Blair is merely naive. And that assessment only highlights the difficulty he’s had in making his case. “I think Blair’s enormously frustrated with the debate on Iraq because he believes the evidence is clear,” says Henderson. “But people expect high standards of arguments for doing something other than the status quo. And he hasn’t managed to win those arguments yet. He hasn’t managed the public debate.”

Andrew Rawnsley, a newspaper columnist for the Observer, noted the odd disconnect last week: “The British are usually undaunted by the prospect of war, and Tony Blair is generally the most effective communicator of his political generation.” Yet he’s simply not been able to sell this war.

Even Gardiner, who considers Blair’s hawkish stance on Iraq to be the prime minister’s “finest hour,” concedes Blair still needs to sell the public, perhaps with a prime-time televised appeal.

One week after his hour-long press conference, which was meant to bolster confidence, a Guardian poll found that support for war had dropped six points in just the past month, to a paltry 30 percent.

Experts suggest Blair’s difficulties stem from an array of obstacles, beginning, says Henderson, with “a broad streak of anti-Americanism in this country” that’s been reawakened by Bush’s lone-rider cowboy persona.

Meanwhile, Britain’s war critics, both in Parliament and in the press, are far less timid than their counterparts in America. Using the type of strident language that’s rarely heard by elected U.S. officials, one on-the-record Labour Party chairman recently told the Telegraph: “We have no justification at all for a war on Iraq. The logic of the situation beggars belief. It is manufactured by George Bush, and oil is a factor.”

And unlike Bush, Blair does not have an entrenched neoconservative movement like the one in the U.S. that’s been beating the drums of war so effectively for the past year. Neocon hawks both inside the administration (Vice President Dick Cheney and Deputy Secretary of Defense Paul Wolfowitz) and in the political press (the Weekly Standard, Wall Street Journal) have been lobbying for war with Iraq almost since the moment the World Trade Center was attacked. They’re convinced that toppling Saddam will not only make America safer but, after the regime change, also be the first crucial step in redrawing the entire Middle East.

“There’s very little of that neocon culture here, or that messianic sense of this war,” notes Kettle. “Nobody thinks we can redraw the map of the world. And Blair certainly does not talk about it.”

Blair’s Iraq policy does have the editorial support of Rupert Murdoch’s bestselling newspaper, the Sun, along with other conservative voices in the British press, including the Times, the Sunday Times and the Telegraph. But even that right-wing support seems tepid. Writing this month in London’s venerable conservative weekly magazine the Spectator, one guest columnist boldly declared: “There exists no legitimate reason for us to wage or threaten war against Iraq. Saddam Hussein poses no threat to us.”

There is some good news for Blair as he tries to maneuver his way to safe ground. His conservative political opponents in the Tory Party remain in such a state of disarray that he has nothing to fear from their jabs. (Blair easily won his two previous elections.)

Instead, it’s inside his own Labour Party that Blair has to watch for real trouble. Last November marked the first time as prime minister that Blair was subject to hostile interrogation from members of his own party, or backbenchers, during the weekly question-and-answer session with him. The topic was Iraq.

Today, approximately 130 of Labour’s 400-plus M.P.s have signed a petition critical of any unilateral war with Iraq, while a recent survey of 74 Labour Party chairmen revealed that 89 percent of them opposed war on Iraq if it came without a U.N. resolution authorizing force. The chairmen also predicted thousands would desert the party if Blair lead Britain into war. Writing in the Independent newspaper this month, one Labour Party M.P. declared: “The Prime Minister may take Britain into America’s war, but he will not take the party with him.”

Some have compared Blair’s simmering crisis to 1956 and the botched 72-hour battle Britain fought with Egypt over the nationalization of the Suez Canal. Back then Sir Anthony Eden lost the prime minister’s post, punished for taking Britain into war without public support.

Still, Labour backbenchers owe Blair a lot and have for years showed remarkable discipline. Parliament watchers suggest one in 10 Labour M.P.s will stand by Blair no matter what he decides on Iraq, three in 10 are already opposed, and the remaining six of 10 are up for grabs. They’re the ones who could ultimately decide the question of war. (Along with Attorney General Lord Peter Goldsmith, who may have to rule on the legality of Britain’s fighting a preemptive war not authorized by the U.N.)

Indeed, the only thing that would cause Blair to back out of a war now, says Kettle, “is a revolt within his own party involving a major member of government.”

That major member, most agree, would probably have to be Chancellor Gordon Brown, among the most powerful members of Blair’s cabinet. During the 1980s the two men helped rejuvenate the Labour Party, with its now more moderate image, and today Brown is considered to be Blair’s most likely successor. Once good friends, the two have their separate political camps and eye each other warily. Ambitious, Gordon clearly has his eye on the top job. While he recently did come to Blair’s aid by publicly supporting the prime minister’s hawkish position on Iraq, it came only after three months of relative silence, leading to some speculation he was trying to distance himself from Blair.

If, and it’s a big if, Brown were to break ranks with Blair over Iraq either publicly or, more likely, behind closed doors, Blair’s leadership would then be under serious attack, and the White House could lose its most important ally. “If Blair couldn’t carry Gordon Brown, he’d be in real trouble,” says Eric Shaw, a professor of political science at the University of Stirling in Scotland.

That’s precisely why the United States has to move quickly on Iraq, says Gardiner. The longer the debate simmers, the more emboldened Blair’s Labour Party opponents may become, and they may eventually challenge his leadership, which could throw into question Britain’s role in the war. “Blair can’t afford to be left hanging for months,” says Gardiner.

It’s clear the White House doesn’t want to delay an invasion for months, which is good news for Blair. Still, there’s a chance Saddam’s reign won’t be the only one decided by the war.

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Eric Boehlert, a former senior writer for Salon, is the author of "Lapdogs: How the Press Rolled Over for Bush."

“The Intouchables”: Racial comedy, French style

"The Intouchables" is the biggest foreign-language film of all time. Some critics say it's also racist

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A still from "The Intouchables"

Here’s a startling news item: “The Intouchables,” a lively if largely predictable Parisian comedy about a wealthy quadriplegic and his ne’er-do-well immigrant caretaker, has become the biggest international success in the history of French cinema. Indeed, according to some sources — and these things are notoriously difficult to measure on a global and historical scale — “The Intouchables” is now the biggest non-Anglophone film of all time, with a worldwide gross approaching $300 million.

But beyond the business headlines, what’s really fascinating about “The Intouchables” is the way it exposes the gulf in racial attitudes between France and the United States, along with another gulf that’s just as wide, the one that has film critics and cinephiles on one side and popular audiences on the other. Viewers in numerous countries have eagerly devoured this feel-good fable about two men of different races and classes who forge an improbable friendship (dubbed by some wags “Driving Monsieur Daisy”). While the audience for foreign-language film is inherently limited in America, there’s no reason to believe it won’t do well here also. At the same time, heated transatlantic debate has erupted over whether “The Intouchables” traffics in offensive racial stereotypes, with Variety critic Jay Weissberg writing an uncharacteristically angry review that accused the film of “Uncle Tom racism” and compared the Senegalese caretaker character to a “performing monkey.”

When Harvey Weinstein first acquired “The Intouchables” in the wake of its smash success in France, he clearly imagined another dark-horse Oscar contender, in the wake of “The Artist.” The film has racked up audience awards at film festival after film festival, and currently stands at No. 93 on IMDb’s user-generated “Top 250″ list. Omar Sy, the charismatic Afro-French actor who plays Driss, the caretaker, won this year’s César award (the French Oscar equivalent) for best actor, beating out actual Oscar winner Jean Dujardin. But with the looming possibility that “The Intouchables” could spark a divisive, soul-searching racial debate — which was precisely what squelched the Oscar hopes of “The Help” — those expectations have been downplayed. (That isn’t why “The Intouchables” is being released this week, with Weinstein and most of the film-biz aristocracy in Cannes, but the coincidence is oddly useful.)

Let me come clean right now and tell you that I enjoyed “The Intouchables” quite a bit. If you’re looking for a lightweight summer change of pace, with just a smidgen of Continental flair, here it is. Both Sy and co-star François Cluzet (of the hit thriller “Tell No One”) are marvelous, the former playing a guy who’s constantly in motion, both physically and psychologically, and the latter playing a depressed and repressed guy who literally can’t move, but whose real imprisonment has more to do with his spirit than his spinal cord. Don’t go expecting serious French art cinema, please; those who have described this movie as something like a mid-’80s Eddie Murphy comedy dressed up with classy Parisian settings are correct. But here’s the question, and I can’t answer it for you: Is that such a bad thing, in itself?

Once is not enough for a movie that’s made this much money, of course, and Weinstein already has an American remake in the works, possibly to star Colin Firth as stick-up-butt wheelchair dude. The real Eddie Murphy has gotten too old to play the loosey-goosey, pot-smoking sidekick, but there’s no shortage of guys who could do it: Jamie Foxx is the default setting these days, but I’d go for the suddenly hot Kevin Hart from “Think Like a Man.” I’m not claiming it’s aesthetically or sociologically valid to remake a French movie that already feels like a reheated Hollywood throwback, by the way. I’m saying it’s a cruel reality, like Dutch elm disease or Adam Sandler, and there’s no way to stop it.

To get back to the case at hand, I do understand what the haters find so offensive about “The Intouchables.” (The infelicitous English title, by the way, reflects the fact that they couldn’t really get away with calling it “The Untouchables,” could they?) I was pretty taken aback by Weissberg’s vituperative review, and I tend to believe that “Uncle Tom” is one of those expressions that white people should pretty much never use. On the other hand, I can only applaud him for abandoning the balanced, analytical mode of trade-magazine criticism and saying exactly what he damn well thinks. (As for comparing a black man to a monkey — well, I understand what Weissberg was getting at, but it’s an error of rhetoric, the sort of comment that makes nuance and context disappear.) And I know for sure, from hearing friends and acquaintances in and around the movie business complain about this film, that Weissberg is not alone.

I believe that Olivier Nakache and Eric Toledano, the writing-directing duo who made “The Intouchables,” are innocent of any bad intentions. In fact, “innocent” isn’t a bad word overall, for this movie and the worldview it represents. The French may pride themselves on being the most worldly and sophisticated of all people, but the debate in France about race and immigration and multiculturalism — which ramped up sharply after the suburban riots of 2005 — can sometimes sound strikingly naive to American ears. Until very recently, mainstream French opinion has resisted thinking about the nation in anything except homogeneous terms, despite growing Arab and black minorities (both immigrant and native-born) and evident social problems with segregation and discrimination. (The French census, for instance, is prohibited from collecting data on race or religion, so no one really knows how many French people are black or Islamic.)

There can be no question that the characters in “The Intouchables” are stereotypes, in the broad sense. Cluzet’s character, Philippe, is an aristocratic zillionaire who lives in an astonishingly luxurious flat in central Paris. Since being injured in a paragliding accident, he’s lived inside a cocoon of money and privilege, surrounded by antiques and modern art and a bevy of assistants. Sy’s character, Driss, is easygoing, good-hearted, lustful and uncultured, and his passions run toward pretty girls, getting high and vintage American R&B. Philippe hires Driss specifically because Driss doesn’t particularly want the job — he only shows up to get a signature for his benefits card — and feels no pity for Philippe.

Which is actually a pretty good reason. You get where this is going, most likely: Driss is a pretty inept caretaker, at least at first, but is the only person Philippe knows who will relate to him man to man. There’s a bit of borderline-homophobic humor about their enforced intimacy; there are interludes with hookers and fast cars and late-night conversations fueled by booze and marijuana. Driss learns to like Mozart and modern art; Philippe learns to get down with Earth Wind & Fire and gets some valuable tips about chicks. It’s probably fair to summarize this movie as being the story of a paralyzed white man who needs the help of a younger, stronger, more virile black man to reconnect with his own masculinity, and if you want to say that narrative reflects an underlying latticework of racist attitudes, I won’t argue with you. Then there’s the complicating factor that in the real-life story on which “The Intouchables” is based, the caretaker was of Algerian origin, and hence Arab rather than black. (The filmmakers have said they wanted to cast Sy, and built the story around him, but it’s certainly possible to render other interpretations.)

But one can concede all of that while still agreeing with French historian and multicultural activist François Durpaire, who has responded to Weissberg by arguing that the huge success of “The Intouchables” is likely to have positive effects in Europe’s emerging discussion of race and culture, even if the movie relies on crude generalizations. (Durpaire adds that if “The Intouchables” is offensive, so were the “Beverly Hills Cop” movies.) Movies are not meant to be seminars in sociology, after all, and most viewers will receive “The Intouchables” as an upbeat story about two guys from vastly different circumstances who turn out to have a lot in common and help each other, etc., rather than a lesson in racial semiotics.

Perhaps the strongest endorsement for “The Intouchables” has come from aging French ultra-nationalist Jean-Marie Le Pen, who has described it as an allegory about how the future of his nation depends on disenfranchised young immigrants from the suburbs. He thinks that’s a “dreadful” vision, mind you — but, seriously, who knew that guy was so smart?

“The Intouchables” opens this week in New York and Los Angeles, with wider national release to follow.

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Europe’s awkward couple

Angela Merkel and Francois Hollande finally meet in person -- and it isn't exactly warm

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Europe's awkward coupleAngela Merkel and Francois Hollande in Berlin on Tuesday, (Credit: Reuters/Fabrizio Bensch)

BERLIN, Germany – It started with a handshake, not a kiss. When Chancellor Angela Merkel and new French President Francois Hollande finally met in person on Tuesday evening, there was little of the warmth that marked her meetings with Nicolas Sarkozy in recent years.

Aides had downplayed the rendezvous as simply aimed at getting to know one another rather than about hammering out any policy. Yet the future of Europe could hinge on whether these two leaders find a way to work well together.

Rarely have two people met for the first time with so much baggage. Merkel refused to meet with Hollande during his election campaign, and made the highly unusual step of publicly backing his rival, fellow conservative Sarkozy. Hollande for his part seemed to be campaigning as much against Merkel as the incumbent, pledging to renegotiate the fiscal pact that she had championed.

Now the two have finally met face-to-face and the encounter seemed cordial if hardly warm. Following the ceremonial reviewing of the guard of honor – during which Merkel had to gently nudge Hollande in the right direction on the red carpet – the two held an hour -long meeting. They then addressed the throng of international journalists in a joint press conference during which Merkel remained stony-faced during much of Hollande’s comments, interspersed with the odd smile.

The pair did seek to downplay their differences and strike a friendly tone with Merkel even joking that the lightning that had struck Hollande’s plane on his way to Berlin was perhaps a “good omen.”

“I’m not sure whether there is sometimes more divergence perceived in the public realm than there really is,” the chancellor told the press conference. “We are aware of our responsibility, as Germany and France, for a positive development in Europe. Carried by this spirit I believe we will of course find solutions for the different problems.”

Both tried to show a united front on Greece, which risks ejection from the euro zone if it backs anti-austerity parties in the fresh elections likely after the parties failed to form a government. “Just like Frau Merkel,” Hollande said, he wanted Greece to remain in the euro zone while insisting that Athens meet the terms of the bailout agreement.

Yet when it came to the crux of the differences between the two, on austerity versus growth, it was obvious that the only thing that had been agreed so far was that they disagree.

After all, it remains to be seen how Merkel’s strict stance on rapidly reducing budget deficits can be married with Hollande’s plea for some kind of stimulus package to boost growth.

Hollande reiterated his promise to reopen talks about the fiscal pact, the agreement on strict budget discipline which he has said France will not ratify unless a growth element is also adopted.

“I said in the campaign, and I repeat today, that I want to renegotiate what was established at a certain moment,” Hollande told reporters. “Everything that can contribute to growth must be put on the table. I don’t want growth to be just a word, but tangible measures.”

He mentioned boosting competitiveness, as well as Euro bonds – essentially pooling the debt of euro zone members – something Merkel has so far flatly rejected.

He did not, however, mention tinkering with the European Central Bank’s mandate, surely a red line if ever there was one in Berlin.

For all the inauspicious beginnings, observers predict that the two will eventually hit it off. Both play on their modest, down- to-earth style and exude an air of pragmatism rather than charisma. Hollande depicts himself as “Mr Normal” in contrast to the Bling Bling of his predecessor Sarkozy, while the unassuming Merkel is often seen doing her own grocery shopping. And both are said to have a wry sense of humor in private.

Furthermore, Hollande’s gesture of appointing Germanophile Jean-Marc Ayrault as his prime minister will have gone down well in Berlin.

Yet, it is hardly a meeting of equals. Merkel is an old hand in European politics now, in her seventh year in office, while Hollande’s previous executive experience has been confined to serving as mayor of the small town of Tulle.

Furthermore Germany is the EU’s economic powerhouse, with its export-driven economy keeping the rest of the euro zone out of recession, according to figures released on Tuesday. And Berlin has long been calling the political shots in Europe, with the fiscal compact being dreamed up by Merkel, as a way of preventing EU states from getting into deeper debt in the future.

At the same time Merkel is increasingly isolated in Europe, as there is a growing realization that austerity is choking off growth. Hollande knows that other leaders, including conservatives like Italy’s Mario Monti, also want Berlin to budge on its debt reduction fixation.

Hollande came to Berlin straight from his inauguration ceremony in Paris. After beating Sarkozy on May 6 he will feel he has a mandate from the French people to push for a change of direction in Europe. Yet he also faces a tough economic situation back home, with just 0.1 percent growth in the first quarter and growing unemployment, now at a 13-year high of 10 percent. If the economy were to contract even further, it could make it very difficult to fulfill many of his campaign pledges, such as reversing Sarkozy’s pension reforms.

Merkel has her own problems, despite the strong economy. Her party, the conservative CDU, has just suffered a bruising defeat in the state of North Rhine-Westphalia. Her coalition is increasingly fractious, with Bavaria’s CSU leader Horst Seehofer publicly slamming the CDU candidate in North Rhine-Westphalia Norbert Roettgen on TV for his campaign, while the FDP is unpredictable due to an ongoing leadership crisis.

The fact that she needs a two-thirds majority in the Bundestag to ratify the fiscal compact means she is dependent on the opposition SPD. And while the party has broadly backed her euro policy, it has been emboldened by Hollande’s victory and the strong showing in NRW. On Tuesday the party’s leaders said that they would delay the vote on the fiscal pact, originally scheduled for late May, saying it wanted to see concrete growth measures as well as austerity.

That would leave time for Merkel and Hollande to agree to some sort of compromise solution.

The pair said they will seek an agreement ahead of the next big summit of EU leaders in June. “It will be very important that Germany and France present their ideas together at this summit, and we have talked about the preparation,” Merkel said.

They will see each other before that, meeting at an informal dinner of EU leaders on May 23, as well as at the forthcoming NATO and G8 summits.

However, Hollande is unlikely to show much willingness for compromise with Berlin just yet. After all his party is facing legislative elections in mid June and he will want to make sure he is not seen to be backsliding on campaign pledges.

Hollande wants his five-year term to start with his Socialist Party securing control of the National Assembly so that he can push through his agenda. Otherwise he faces a frustrating period of “cohabitation” with a prime minister from the opposing camp, such as occurred when conservative Jacques Chirac’s presidency coincided with the premiership of Socialist Lionel Jospin from 1997 to 2002.

As such Merkel cannot expect Hollande to veer from his insistence on growth measures. And for all his unassuming manner, he could well prove to be a more difficult partner than Sarkozy in the long run.

Nevertheless Merkel is also likely to stand firm on many issues. Asked on Tuesday night if she feared Hollande’s campaign promises she replied coolly: “I am seldom afraid, as fear is not a good counselor in politics.”

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Europe’s austerity revolt

The message from France and Greece this weekend was clear. Will President Obama and Republicans listen?

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Europe's austerity revoltSocialist Party candidate for the presidential election Francois Hollande delivers a speech during a meeting in Lorient, western France, Monday, April 23, 2012. (Credit: AP/David Vincent)
This originally appeared on Robert Reich's blog.

Who’s an economy for? Voters in France and Greece have made it clear it’s not for the bond traders.

Referring to his own electoral woes, Prime Minister David Cameron wrote Monday in an article in the conservative Daily Telegraph: “When people think about the economy they don’t see it through the dry numbers of the deficit figures, trade balances or inflation forecasts — but instead the things that make the difference between a life that’s worth living and a daily grind that drags them down.”

Cameron, whose own economic policies have worsened the daily grind dragging down most Brits, may be sobered by what happened over the weekend in France and Greece – as well as his own poll numbers. Britain’s conservatives have been taking a beating.

In truth, the choice isn’t simply between budget-cutting austerity, on the one hand, and growth and jobs on the other.

It’s really a question of timing. And it’s the same issue on this side of the pond. If government slices spending too early, when unemployment is high and growth is slowing, it makes the debt situation far worse.

That’s because public spending is a critical component of total demand. If demand is already lagging, spending cuts further slow the economy – and thereby increase the size of the public debt relative to the size of the overall economy.

You end up with the worst of both worlds – a growing ratio of debt to the gross domestic product, coupled with high unemployment and a public that’s furious about losing safety nets when they’re most needed.

The proper sequence is for government to keep spending until jobs and growth are restored, and only then to take out the budget axe.

If Hollande’s new government pushes Angela Merkel in this direction, he’ll end up saving the euro and, ironically, the jobs of many conservative leaders throughout Europe – including Merkel and Cameron.

But he also has an important audience in the United States, where Republicans are trying to sell a toxic blend of trickle-down supply-side economics (tax cuts on the rich and on corporations) and austerity for everyone else (government spending cuts). That’s exactly the opposite of what’s needed now.

Yes, America has a long-term budget deficit that’s scary. So does Europe. But the first priority in America and in Europe must be growth and jobs. That means rejecting austerity economics for now, while at the same time demanding that corporations and the rich pay their fair share of the cost of keeping everyone else afloat.

President Obama and the Democrats should set a clear trigger — say, 6 percent unemployment and two quarters of growth greater than 3 percent — before whacking the budget deficit.

And they should set that trigger now, during the election, so the public can give them a mandate on Election Day to delay the “sequestration” cuts (now scheduled to begin next year) until that trigger is met.

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Robert Reich, one of the nation’s leading experts on work and the economy, is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. Time Magazine has named him one of the ten most effective cabinet secretaries of the last century. He has written 13 books, including his latest best-seller, “Aftershock: The Next Economy and America’s Future;” “The Work of Nations,” which has been translated into 22 languages; and his newest, an e-book, “Beyond Outrage.” His syndicated columns, television appearances, and public radio commentaries reach millions of people each week. He is also a founding editor of the American Prospect magazine, and Chairman of the citizen’s group Common Cause. His widely-read blog can be found at www.robertreich.org.

Europe’s new “Marshall Plan”?

With Hollande poised to win the French election, the EU is finally moving away from destructive austerity measures

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Europe's new Socialist Party candidate for the presidential election Francois Hollande(Credit: AP Photo/David Vincent)
This article originally appeared on GlobalPost.

BRUSSELS, Belgium — The ground is shifting in Europe’s debt crisis. The edifice of economic austerity built under the guidance of German Chancellor Angela Merkel is starting to wobble.

Global PostThere’s a new buzz in Brussels about pumping hundreds of billions into a Marshall Plan-inspired fund to get Europeans back to work, devaluing the euro to boost exports or sharing out the euro-zone debt burden.

“This generalized austerity is prolonging the crisis. I can’t accept that. We need growth in Europe,” says Francois Hollande, the Socialist leader tipped to win Sunday’s French presidential election.

“With every day that goes by, I have the feeling that my initiative is more and more understood in Europe,” Hollande said in comments posted on his website Monday.

Hollande is enjoying an eight-point lead over incumbent Nicolas Sarkozy in opinion polls ahead of Sunday’s vote. His expected victory is the main catalyst behind the emerging pro-growth emphasis in Europe, but there are other factors.

Continuing grim economic news — Spain announced Monday that it had sunk into a second recession in just over two years — is fueling doubts that Europe’s three-year dedication to spending cuts and tax hikes may not be the best way to cure the continent’s economic malaise.

“Europe has misdiagnosed its problems in important respects and set the wrong strategic course,” former U.S. Treasury Secretary Lawrence Summers wrote in a column this weekend. “Only if growth is restored can the euro endure and European financial problems be resolved.”

The Spanish newspaper El Pais reported Sunday that the EU was preparing a 200 billion euro “sort of Marshall Plan” to fund infrastructure projects, green energy and advanced technology.

EU spokeswoman Pia Ahrenkilde Hansen said Monday that such figures were “highly speculative.” However, the EU is putting together a plan to boost growth for approval at what is expected to be a highly significant summit of European leaders on June 28-29.

Wary that the new focus risks further spooking markets, Ahrenkilde Hansen told reporters that going for growth did not mean a return to slack finances. “We are not talking about an alternative to fiscal consolidation,” she said. “The issue is not either fiscal correction, or growth. We need both.”

The late June EU summit is likely to be Hollande’s first if he succeeds in unseating Sarkozy.

Much has been made of the Socialist leader’s expected clash with Merkel due to his criticism of the fiscal discipline treaty that is the centerpiece of her response to the treaty.

Both Merkel and Hollande in recent days endorsed two of the key pro-growth ideas expected to be on the summit agenda: fast-tracking the use of remaining money from the EU’s budget for developing its poorest regions, which ran at 360 billion euros from 2007-2013, and boosting the firepower of the EU’s lending arm, the European Investment Bank.

EU Economics Commissioner Olli Rehn has suggested that lifting its capital by just 10 billion euros could enable the EIB to leverage lending of 180 billion euros.

Although they have continued to spar in media comments, Hollande and Merkel have been preparing the ground for non-confrontational relationship. There are signs of a softening of the Frenchman’s demand for a renegotiation of the fiscal discipline treaty.

Defeat for Sarkozy would however be a blow for Merkel, who offered unprecedented support for the incumbent in the early stages of the French campaign.

She also risks losing allies elsewhere.

The Dutch government, one of the strongest supporters of Merkel’s insistence on austerity for southern Europe, fell last week over its own budget-cutting plans and will face a stern challenge from the center left and far right in September elections.

Parties on both political extremes are seen profiting from a wave of discontent in Sunday’s parliamentary elections in Greece to find a successor to the technocratic government which has gone along with the tough conditions set by the EU in return for bailout packages.

Adding to the pressure over the past few days, several key players have joined the chorus calling for a growth initiative, including European Central Bank Governor Mario Draghi; top EU financial services official Michel Barnier; and the UN’s International Labor Organization.

“Austerity has, in fact, resulted in weaker economic growth, increased volatility and a worsening of bank’s balance sheets,” said an ILO report released Monday. “It is high time for a move toward a growth- and job-orientated strategy.

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Can this woman save Sarkozy?

France's far-right party leader may help the embattled president win reelection

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Can this woman save Sarkozy?Marine Le Pen reacts after the first round of French presidential elections on Sunday. (Credit: AP/Jacques Brinon)
This originally appeared on GlobalPost.

LONDON, UK — Campaign strategists for both Nicolas Sarkozy and Francois Hollande will be scrambling on Monday to make sense of a first-round presidential vote that left neither with a clear path to victory — and showed a surprise level of support for a far-right candidate.

Global Post

As many analysts expected, Socialist Hollande scored higher than incumbent Sarkozy in Sunday’s election, but thanks to a surge in the popularity of Marine Le Pen of the anti-immigration National Front party, a easy win is no longer the foregone conclusion that many predicted.

Hollande took 28.8 percent of the vote against Sarkozy’s 26.1 percent, meaning they will face each other in a run-off vote on May 6. But what was expected to be a simple referendum on differing plans to rescue France’s struggling economy has been complicated by Le Pen’s showing of 18.5 percent.

As horse-trading begins for the support of those who voted for the eight lower-polling candidates now eliminated from the race, the problem now facing both Hollande and Sarkozy is how they can capitalize on the far-right turnout.

Some analysts said center-right Sarkozy is most likely to benefit from Le Pen’s success, others argued it could derail him. Meanwhile, Jean-Marie Le Pen, who founded the party his daughter now leads, said the result put the National Front on track for big wins in June parliamentary elections.

Le Pen’s success also raises the possibility that French opinion was swayed by a series of shootings in southern France last month involving a 23-year-old terrorist who claimed allegiance to al-Qaeda. At the time, Le Pen said the incident showed that the “Islamic fundamentalist threat has been underestimated in our country.”

That said, Le Pen has doubtlessly attracted considerable support for her protectionist economic policies and for being the only conservative candidate proposing to take France out of the euro.

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