Momentum needed for Macron

Emmanuel Macron has been elected president of France with a business-friendly vision of European...
Emmanuel Macron. Photo: ODT files
Newly-elected French President Emmanuel Macron has a hard task, and limited time, ahead of him if he plans to pull the country out of its economic malaise.

Mr Macron was the overwhelming winner of the run-off election between himself and far-right National Front candidate Marine Le Pen, who he defeated in an acrimonious campaign.

Despite receiving more than 65% of the total votes counted, Mr Macron must deal with an issue which tainted his overall support.

About 12.5% of votes cast were either blank or spoiled, the official figures showed, while 24.7% of the voters accounted for abstained.

While Ms Le Pen won about 35% of the votes counted, her total vote appeared to be slightly less than the blank or spoiled votes, along with the abstentions.

France is a divided country and Mr Macron came through the middle to win a five-year term because the Socialists are in disarray and the conservative candidate became embroiled in a fraud investigation.

Among the challenges ahead for the 39-year-old president will be reversing a decade of slow growth, rising unemployment and dwindling competitiveness.

He has promised to not scrap the controversial 35-hour work week. Instead he plans to get around it by allowing firms to negotiate in-house deals with their employees on working hours and pay.

He has signalled he may fast-track his labour reforms through Parliament through an executive order - similar to the actions being taken by United States President Donald Trump.

In what will seem a familiar back story for New Zealand voters, Mr Macron worked in mergers and acquisitions for the investment bank Rothschild. Helping to broker Nestle's acquisition of Pfizer's baby food division earned him a small fortune. After Rothschild, he joined President Francois Hollande's staff in the Elysee in 2012 and he soon became economic minister.

In government, Mr Macron set about attacking some of the sacred cows of the French ``social model'' such as the 35-hour working week, iron-clad job protection and the civil service's culture of jobs-for life.

For the European Union, its future looks more sound with the election of Mr Macron. Ms Le Pen promised to take France out of the EU, following Britain's lead. Without France, one of the financial backers of nations defaulting on their debt, Germany would have been the only economy prepared to try to save nations like Italy and Portugal.

Mr Macron is off to Germany to meet Chancellor Angela Merkel, who is being urged by her party to adopt a less rigid stance towards France in fiscal policy. A leading member of her Social Democrats says the German Government should support Mr Macron to counter an increased populist sentiment and euro-scepticism in the neighbouring country.

Back at home, Mr Macron will be trying to push through his reform agenda at a time when France is more divided than ever over how to respond to globalisation. New Zealand is well used to having a tariff-free trading environment at home while facing trade barriers abroad. For most of France, that will be a new environment.

To enforce his agenda, he needs to secure parliamentary backing and that will depend on how his unproven new party En March! (Onwards!) fares in next month's legislative elections.

France has a retirement age of 62 but instead of raising it, Mr Macron wants to unify France's confusing web of pension plans.

He plans to cut corporate tax and reduce state spending, all of which will upset the left of the political spectrum.

Two developments are working in his favour. The French economy is already improving and consumer sentiment is at its highest level in a decade. And although France's unemployment rate remains high, at nearly 10%, the economy has been creating jobs at its fastest pace in nearly 10 years.

France is already improving but Mr Macron will need to make progress to avoid being a one-term president.


 

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