This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2014/08/27/world/europe/france-new-government.html

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
New French Cabinet Expected to Oust Prominent Leftists New French Cabinet Expected to Oust Prominent Leftists
(about 1 hour later)
PARIS — A day after infighting over economic policy led to the collapse of the government, Prime Minister Manuel Valls was expected to appoint a cabinet of centrist political allies on Tuesday, a move aimed at trying to crush an open rebellion on the left of his Socialist Party that threatens to hobble France and undermine a eurozone recovery.PARIS — A day after infighting over economic policy led to the collapse of the government, Prime Minister Manuel Valls was expected to appoint a cabinet of centrist political allies on Tuesday, a move aimed at trying to crush an open rebellion on the left of his Socialist Party that threatens to hobble France and undermine a eurozone recovery.
In an attempt to reassert his authority, the French news media reported, Mr. Valls was expected to name Michel Sapin, the current finance minister, to replace Economics Minister Arnaud Montebourg, a leftist firebrand whose criticism of the government’s austerity measures helped spur its collapse. In an attempt to reassert his authority, the French news media reported, Mr. Valls was expected to name Michel Sapin, the current finance minister, to replace Economics Minister Arnaud Montebourg, a leftist firebrand whose criticism of the government’s austerity measures helped lead to its collapse.
Mr. Valls was also expected to bring on board Louis Gallois, the former chief executive of European Aeronautic Defense and Space, who wrote a seminal report in 2012 advising President François Hollande on policy changes to lift France’s flagging competitiveness.Mr. Valls was also expected to bring on board Louis Gallois, the former chief executive of European Aeronautic Defense and Space, who wrote a seminal report in 2012 advising President François Hollande on policy changes to lift France’s flagging competitiveness.
Analysts said the new cabinet was unlikely to change policy and would probably press ahead with economic measures already articulated by Mr. Hollande, including making France’s rigid labor market more flexible and implementing a “responsibility pact” to cut business charges on employers, in return for companies’ pledge to create jobs. At the same time, France is expected to continue pressing the European Union and Germany for more flexibility on fiscal rules, and to step up calls on the European Central Bank to help lift growth. Analysts said the new cabinet was unlikely to change policy and would probably press ahead with economic measures already articulated by Mr. Hollande, including making France’s rigid labor market more flexible and implementing a “responsibility pact” to cut business charges on employers, in return for a pledge from companies to create jobs. At the same time, France is expected to continue pressing the European Union and Germany for more flexibility on fiscal rules, and to step up calls on the European Central Bank to help lift growth.
The shake-up of the government was the second major reshuffle since Mr. Hollande became president in 2012. His stewardship has been dogged by a flat economy and double-digit unemployment, helping to make him one of the most unpopular presidents in decades.The shake-up of the government was the second major reshuffle since Mr. Hollande became president in 2012. His stewardship has been dogged by a flat economy and double-digit unemployment, helping to make him one of the most unpopular presidents in decades.
The fall of the French government, which exposed a sharp rift in France and Europe over austerity policies that many now blame for hampering growth, came after Mr. Montebourg challenged the government’s economic direction, saying that austerity was thwarting a French recovery. The fall of the French cabinet, which exposed a sharp rift in France and Europe over austerity policies that many now blame for hampering growth, came after Mr. Montebourg challenged the government’s economic direction, saying that austerity was thwarting a French recovery.
Advisers close to Mr. Valls said Mr. Montebourg had also crossed the line by openly criticizing Chancellor Angela Merkel of Germany and insisting defiantly over the weekend that France and Europe should not be in thrall to the economic axioms of the German right. Advisers close to Mr. Valls said Mr. Montebourg had also crossed the line by openly criticizing Chancellor Angela Merkel of Germany and by defiantly insisting over the weekend that France and Europe should not be in thrall to the economic axioms of the German right.
In addition to Mr. Montebourg, other leftist ministers were expected to leave the cabinet, including Benoît Hamon, the education minister, and Aurélie Filippetti, the culture minister, both of whom have signaled their disenchantment with Mr. Hollande’s economic policies.In addition to Mr. Montebourg, other leftist ministers were expected to leave the cabinet, including Benoît Hamon, the education minister, and Aurélie Filippetti, the culture minister, both of whom have signaled their disenchantment with Mr. Hollande’s economic policies.
The crisis illustrated the open rebellion faced by Mr. Hollande from the left wing of his Socialist Party, and analysts warned that it threatened to undermine his economic measures. France, which has the largest economy in the eurozone after Germany, is deeply influential over European Union policy in Brussels. The crisis illustrated the open rebellion faced by Mr. Hollande from the left wing of his Socialist Party, and analysts warned that it threatened to undermine his economic measures. France, which has the largest economy in the eurozone, after Germany, is deeply influential over European Union policy in Brussels.
The French infighting threatens to spill over into the management of the eurozone, heightening divisions within its 18 countries and threatening its recovery. It could also provide a boon to the right at a time when France’s main conservative party is mired by a leadership crisis and the ascendant far-right National Front has been seeking to exploit divisions on both the left and the right and to plug the electoral gap. The French infighting threatens to spill over into the management of the eurozone, heightening divisions within its 18 countries and threatening its recovery. It could also provide a boon to the right at a time when France’s main conservative party is mired by a leadership crisis and the ascendant far-right National Front has been seeking to exploit divisions on both the left and the right.
Mr. Sapin, if he becomes economics minister, will play a leading role in trying to steer the French economy toward greater stability. Like nearly every member of the cabinet, Mr. Sapin, a career Socialist politician who attended an elite French university with Mr. Hollande, has never worked in business. He is better versed in the nuances of European politics, having gotten his start in the early 1990s, when, as finance minister under President François Mitterrand, also a Socialist, he managed the successful referendum campaign to persuade the French to join in the creation of the euro.Mr. Sapin, if he becomes economics minister, will play a leading role in trying to steer the French economy toward greater stability. Like nearly every member of the cabinet, Mr. Sapin, a career Socialist politician who attended an elite French university with Mr. Hollande, has never worked in business. He is better versed in the nuances of European politics, having gotten his start in the early 1990s, when, as finance minister under President François Mitterrand, also a Socialist, he managed the successful referendum campaign to persuade the French to join in the creation of the euro.
More recently, Mr. Sapin has been busy pushing through many of the French president’s campaign promises, including a program for government-financed jobs for young people and changes to French labor law making it easier for employers to cut wages and working hours in economic downturns.More recently, Mr. Sapin has been busy pushing through many of the French president’s campaign promises, including a program for government-financed jobs for young people and changes to French labor law making it easier for employers to cut wages and working hours in economic downturns.
He has also been a blunt voice on the dangers plaguing the French economy. Last year, he sparked an outcry from his party when he declared that France was essentially “bankrupt.” Earlier this month he warned that a recovery would be difficult after nearly a year of stagnation and of weak growth elsewhere in Europe. He has also been a blunt voice on the dangers plaguing the French economy. Last year, he sparked an outcry from his party when he declared that France was essentially “bankrupt.” Earlier this month, he warned that a recovery would be difficult after nearly a year of stagnation and of weak growth elsewhere in Europe.
But in an interview in July at an economics conference in Aix-en-Provence, he rejected the notion that France risked becoming the next sick man of Europe. “We don’t see it like that,” he said. “France is a huge economy in Europe, with an industrial base, innovation and research. I don’t see how we can be sick — or at least sick for a long time.”But in an interview in July at an economics conference in Aix-en-Provence, he rejected the notion that France risked becoming the next sick man of Europe. “We don’t see it like that,” he said. “France is a huge economy in Europe, with an industrial base, innovation and research. I don’t see how we can be sick — or at least sick for a long time.”
“We are reacting and we are reforming to enhance competitiveness,” he added.“We are reacting and we are reforming to enhance competitiveness,” he added.