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Europe’s declaration of independence

Frustrated with the warmongering and arrogance of the Bush White House, Germany and France are making a historic break with the U.S. Relations may never be the same.

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As American and British forces continue to flock to the Persian Gulf, a stunning global rift is reaching historic proportions. Not since the end of WWII has Germany, one of America’s staunchest allies, refused to support the U.S. on a major foreign policy issue. And now, France, which was instrumental in defining the terms of United Nations Resolution 1441, has opted to join the ranks of the “refusal camp,” as it is being called here. Both countries in recent days reiterated that they would block the U.S. request for military and logistical support from NATO to prepare for a war with Iraq. Unthinkable a decade ago, such a move could be a sign that old alliances are in for a profound change.

Appearing to catch Colin Powell off guard during a press conference following an anti-terrorism summit at the U.N., French Foreign Minister Dominique de Villepin lambasted the idea of waging a war on Iraq, saying that “nothing today justifies…military action.” The Washington Post called the surprise declaration “the diplomatic equivalent of an ambush,” but it was only the expression of the most widely held view in France, where 77 percent of the population opposes a war. In Germany, the percentage is identical. And while the Bush administration has at times placed great weight on Monday’s expected report from the U.N. weapons inspection team, it is considered by most European governments as merely an interim stage in the disarmament process. The Middle East, French President Jacques Chirac says, “does not need another war.”

As Chirac and German Chancellor Gerhard Schroeder celebrate the 40th anniversary of the Elysée Treaty, a catalyst in creating the European Union, their positions of opposition to war have come into alignment. Signing a joint political declaration, the two leaders underscored their nations’ “common historical responsibility towards serving Europe” by broadening their cooperation on the international level. Henceforth, France and Germany will strive to “adopt common positions within international institutions, including the Security Council.” The opposition to a U.S.-led strike on Iraq, fluid until now, has solidified around the Franco-German axis.

U.S. Defense Secretary Donald Rumsfeld dismissed the burgeoning rift within NATO and the split between Europe and the U.S. over Iraq. “You’re thinking of Europe as Germany and France. I don’t. I think that’s old Europe,” he said. In those comments and in other ways, the Bush administration seemed to be indicating that it was ready to wage war against Iraq without substantial help from the Continent. But Rumsfeld’s remarks and similar signals only further incite top officials and members of the public in those countries that already consider the United States and the Bush White House arrogant and impetuous. The Franco-German axis is the motor behind the development and growth of the E.U., and their collective weight is probably greater than that of all other E.U. nations combined. Nations such as Spain and Italy have yet to commit to either the U.S. or the French position regarding Iraq.

At least six members of the 15-member Security Council have adopted the position that the American administration still hasn’t made a good case for attacking Iraq and that the inspectors need to be granted substantially more time. Russia and China, also permanent veto-bearing nations, subscribe to that view.

How deep the chasm between the United States and its traditional European allies will get is anyone’s guess. For many French and German analysts, there is a clear distinction between the benevolent power the U.S. symbolized to Western Europeans in the last century, and the America of George W. Bush. On the one hand lies the enlightened America of the New Deal, Jimmy Carter, the elder George Bush and Bill Clinton; on the other hand is the confusing, primal United States of the death penalty, powerful corporate interests, Christian fundamentalism and the Bush doctrine. While they still consider Europe to be the ally of the first America, they argue that it should vehemently oppose the second on principle.

Writing in the London Review of Books, Anatol Lieven has put it most bluntly: America, that elder daughter of the Enlightenment, has become “a menace to itself and to the rest of the world.”

To find a French equivalent to the present United States government, argues Patrice Higonnet, a professor of French history at Harvard, one would need to go back to Napoleon the Third, the French emperor of the mid-1800s who was a heavy-handed diplomat and whose response to opposition could be ruthless. And to most Europeans, the Bush administration is an anachronism, an archaic throwback to medieval politics. Germany and France believe that the administration, in the words of Laurent Murawiec of the Hudson Institute in Washington, wants to “end the present structure of the entire [Persian Gulf] region, inherited from the Pax Britannica.”

“The hawks believe the fundamental source of the woes of the Middle East is the absence of a dominant power over the last 30 years,” argues Pascal Riché in the French daily Libération. “Following the Ottoman Empire and the British domination, there was a power vacuum, and the radical hawks [within the Bush administration] suggest that the United States should fill it, even if that means becoming an imperial power.”

Clearly, that prospect is unpalatable to France, Germany and Russia, to name only a few. Beyond the potential for regional chaos it would provoke in the Middle East, Western European nations fear a rise in Muslim fundamentalism and terrorism in their own countries. A bilateral U.S.-British strike in the absence of clear evidence of weapons of mass destruction in Iraq, and without a resolution specifically authorizing war, would be counterproductive, Villepin argued at the U.N.

The Iraqi imbroglio has crystallized the fears in European public opinion over a U.S.-dominated world. Mainstream Europeans, and not just the tens of thousands of peace activists who have demonstrated daily from Florence to Berlin, want a renegotiation of the global status quo. What is more surprising, however, is that their leaders seem to be embarking on a sweeping effort to achieve just that. Unveiling a draft of the new European constitution in December, Valéry Giscard d’Estaing, the former French president, made it clear that the long-term ambition of Europe should be to compete with the United States politically as well as economically. The draft constitution calls for the elaboration of a common European policy for foreign, defense and security issues, and a much stronger federal backbone for the E.U. — which will count 26 member-states by 2004, and twice the population of the United States.

France, under the new government of Prime Minister Jean-Pierre Raffarin, has been particularly brazen in its efforts to build a viable military alternative to the U.S. Its military budget for 2003 has grown by nearly 8 percent, the largest percentage increase since 1987. Topping $33 billion, it still represents less than 10 percent of annual U.S. military spending, but it is a massive amount by European standards.

Writing in Le Monde of the unprecedented increase in France’s military budget, the journalist Jacques Isnard put it succinctly: “It’s not merely about rebuilding the capacity of the French army: The effort is geostrategic in nature.” Chirac is actively exhorting other European heads of state to get on the bandwagon and increase their own military spending, so that France’s vision of a multilateral world can one day come to pass.

The Bush administration’s “regressive nationalism” abandons “dissuasion in favor of preemption” and “permanent alliances in favor of ad hoc coalitions,” military analyst Nicholas Baverez argues in Le Monde. “This doctrine implies the disappearance of an automatic American engagement in the case of a menace on Europe’s security. Thus, the United States, previously a guarantor of the status quo, is now reinforcing global instability, and the Middle East is an example of that.”

Spurred by France and Germany, the European Union could well be on the verge of one of these sporadic revolutions that have defined its complex, unpredictable evolution. Imagined in the aftermath of WWII as an economic and political union that would prevent future wars between the European greats, the question of rebuilding the military might of Europe has long remained taboo. The fall of the Soviet empire only comforted the notion that Europe didn’t need to be a military powerhouse, as there was nothing to defend against, and countries gladly capitalized on the “peace dividend” by reducing chronic deficits while continuing to provide “welfare state” benefits to their citizenry. The terrorist attacks of Sept. 11, however, engendered a new paradigm.

“September 11th, by revealing the nature of the risks faced, and by the radical reorientation of American diplomacy and strategy it provoked, obliterated the illusions of European nations concerning the peace dividend and their own security policies,” argues Le Monde.

It’ll be a long time yet, however, before Europe creates a new world order, and in the interim international institutions such as NATO and the U.N. Security Council are in for a rough ride.

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Noah Sudarsky is a correspondent for the French newspaper Ouest-France.

“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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