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| French Leader Approves a Cabinet of Mixed Messages | French Leader Approves a Cabinet of Mixed Messages |
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| PARIS — President François Hollande of France approved a new cabinet on Wednesday, putting some high-profile figures — including Ségolène Royal, his former partner — in key positions, but sending mixed messages about his plans for France’s troubled economy. | PARIS — President François Hollande of France approved a new cabinet on Wednesday, putting some high-profile figures — including Ségolène Royal, his former partner — in key positions, but sending mixed messages about his plans for France’s troubled economy. |
| The lack of clarity has worried European Union policy makers, who have watched France’s faltering economy with trepidation, in part because Mr. Hollande has resisted deeper structural changes. | The lack of clarity has worried European Union policy makers, who have watched France’s faltering economy with trepidation, in part because Mr. Hollande has resisted deeper structural changes. |
| With some of his ministerial appointments, Mr. Hollande appeared to be trying to satisfy more leftist factions within his Socialist Party, and with others to be trying to mollify the European Commission, which has called for spending cuts and overhaul of the rigid labor market. But he seemed no closer to a coherent economic policy. Mr. Hollande campaigned on a promise to move the focus of European policy makers away from austerity and toward growth, but when he came to office he largely set those ambitions aside. | With some of his ministerial appointments, Mr. Hollande appeared to be trying to satisfy more leftist factions within his Socialist Party, and with others to be trying to mollify the European Commission, which has called for spending cuts and overhaul of the rigid labor market. But he seemed no closer to a coherent economic policy. Mr. Hollande campaigned on a promise to move the focus of European policy makers away from austerity and toward growth, but when he came to office he largely set those ambitions aside. |
| In remarks on Monday, one day after his party suffered widespread losses in local elections across France, he remained vague but seemed to lean again toward a pro-growth approach. He made more promises to cut taxes, saying he would reduce the burden not only on corporations, but also on low-paid workers. And he underscored anew his intent to preserve France’s generous social payments. | In remarks on Monday, one day after his party suffered widespread losses in local elections across France, he remained vague but seemed to lean again toward a pro-growth approach. He made more promises to cut taxes, saying he would reduce the burden not only on corporations, but also on low-paid workers. And he underscored anew his intent to preserve France’s generous social payments. |
| “It’s not about making savings just for the sake of making savings,” Mr. Hollande said in his televised address. “It’s about preserving our social model. In short, about being more fair and more effective.” | “It’s not about making savings just for the sake of making savings,” Mr. Hollande said in his televised address. “It’s about preserving our social model. In short, about being more fair and more effective.” |
| France’s growth has hovered at close to zero for the past two years, and unemployment stands at 10.4 percent, just below the European Union average, according to Eurostat, the bloc’s statistical arm. | France’s growth has hovered at close to zero for the past two years, and unemployment stands at 10.4 percent, just below the European Union average, according to Eurostat, the bloc’s statistical arm. |
| European Union officials viewed Mr. Hollande’s remarks warily, seeing in them a suggestion that France would seek a further delay in its commitment to bring its budget deficit under the 3 percent of gross domestic product required by European rules. | |
| “France is aware of its commitments,” Jeroen Dijsselbloem, chairman of the Eurogroup of finance ministers, said at a meeting on Tuesday in Athens in response to Mr. Hollande’s speech. “They were already given more time, and more work needs to be done.” | “France is aware of its commitments,” Jeroen Dijsselbloem, chairman of the Eurogroup of finance ministers, said at a meeting on Tuesday in Athens in response to Mr. Hollande’s speech. “They were already given more time, and more work needs to be done.” |
| France has not made an official request for a delay in meeting its deficit targets. It was supposed to meet them by the end of 2013, but after negotiations it was given until the end of 2015. However, in 2013, the national deficit overshot the government target, ending at 4.3 percent of gross domestic product instead of 4.1. | France has not made an official request for a delay in meeting its deficit targets. It was supposed to meet them by the end of 2013, but after negotiations it was given until the end of 2015. However, in 2013, the national deficit overshot the government target, ending at 4.3 percent of gross domestic product instead of 4.1. |
| The government reorganization began Monday with the appointment of Interior Minister Manuel Valls as prime minister, succeeding Jean-Marc Ayrault. Mr. Valls is seen as more centrist on economic issues. On Wednesday, Ms. Royal was named environment and energy minister, and Arnaud Montebourg minister of the economy. | The government reorganization began Monday with the appointment of Interior Minister Manuel Valls as prime minister, succeeding Jean-Marc Ayrault. Mr. Valls is seen as more centrist on economic issues. On Wednesday, Ms. Royal was named environment and energy minister, and Arnaud Montebourg minister of the economy. |
| Mr. Montebourg, whose economic ideas have enjoyed populist appeal, is known for jousting — with mixed results — with foreign investors and companies he viewed as daring to criticize the French labor system. | Mr. Montebourg, whose economic ideas have enjoyed populist appeal, is known for jousting — with mixed results — with foreign investors and companies he viewed as daring to criticize the French labor system. |
| His appointment worries analysts because he has taken strong stands against the deficit reduction targets, said Guntram B. Wolff, the director of Bruegel, a European think tank. | His appointment worries analysts because he has taken strong stands against the deficit reduction targets, said Guntram B. Wolff, the director of Bruegel, a European think tank. |
| “You get again mixed messages with very different people in the cabinet,” Mr. Wolff said. “With Montebourg, it’s a very left approach, and for sure he’s already announced he wants to delay the deficit reduction, which you can debate. But you can’t not debate the need to make reforms on the labor side and the structural side. And we don’t see that coming.” | |
| Mr. Montebourg will share economic responsibilities with the more sober Michel Sapin, a longtime friend of Mr. Hollande’s, who will become the finance minister. Mr. Sapin, as labor minister, was in charge of the government’s halting efforts to stem France’s increasing unemployment. It is unclear how the government plans to divide tasks between Mr. Sapin and Mr. Montebourg. | |
| Ms. Royal, who lost to Nicolas Sarkozy as the Socialist Party’s presidential candidate in 2007, has been largely absent from national politics in recent years. She served in previous Socialist cabinets and has remained a vocal member of the party, saying on Sunday that the election results were a “severe warning.” | Ms. Royal, who lost to Nicolas Sarkozy as the Socialist Party’s presidential candidate in 2007, has been largely absent from national politics in recent years. She served in previous Socialist cabinets and has remained a vocal member of the party, saying on Sunday that the election results were a “severe warning.” |
| Several ministers maintained important portfolios, including the defense minister, Jean-Yves Le Drian; the foreign minister, Laurent Fabius; and the justice minister, Christiane Taubira, who is something of a lightning rod, reviled by the right and beloved by the left for her championing of same-sex marriage. | Several ministers maintained important portfolios, including the defense minister, Jean-Yves Le Drian; the foreign minister, Laurent Fabius; and the justice minister, Christiane Taubira, who is something of a lightning rod, reviled by the right and beloved by the left for her championing of same-sex marriage. |