Tag: Trade

  • Britain secures agreement to join Indo-Pacific trade bloc

    Britain secures agreement to join Indo-Pacific trade bloc

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    LONDON — Britain will be welcomed into an Indo-Pacific trade bloc late Thursday as ministers from the soon-to-be 12-nation trade pact meet in a virtual ceremony across multiple time zones.

    Chief negotiators and senior officials from member countries agreed Wednesday that Britain has met the high bar to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), four people familiar with the talks told POLITICO.

    Negotiations are “done” and Britain’s accession is “all agreed [and] confirmed,” said a diplomat from one member nation. They were granted anonymity as they were unauthorized to discuss deliberations.

    The U.K. will be the first new nation to join the pact since it was set up in 2018. Its existing members are Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and Canada.

    Britain’s accession means it has met the high standards of the deal’s market access requirements and that it will align with the bloc’s sanitary and phytosanitary standards as well as provisions like investor-state dispute settlement. The resolution of a spat between the U.K. and Canada over agricultural market access earlier this month smoothed the way to joining up.

    Member states have been “wary” of the “precedent-setting nature” of Britain’s accession, a government official from a member nation said, as China’s application to join is next in the queue. That makes it in the U.K.’s interests to ensure acceding parties provide ambitious market access offers, they added.

    Trade ministers from the bloc will meet late Thursday in Britain, or early Friday for some member nations in Asia, “to put the seal on it all,” said the diplomat quoted at the top. The deal will be signed at a later time as the text needs to be legally verified and translated into various languages — including French in Canada. “That takes time,” they said.



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    ( With inputs from : www.politico.eu )

  • Israel-UAE free trade deal takes effect

    Israel-UAE free trade deal takes effect

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    Jerusalem: A free trade agreement between Israel and the United Arab Emirates (UAE) has come into effect, the first such economic deal the Jewish state reached with an Arab country.

    Officials from both countries signed a customs agreement on Sunday, enabling the free trade agreement signed in May 2022 to come into effect, an official statement said.

    The customs agreement was signed by Israeli Foreign Minister Eli Cohen and UAE Ambassador to Israel Mohamed Al Khaja in the presence of Netanyahu, reports Xinhua news agency.

    According to the statement, the free trade deal is expected to reduce customs duties and lower the cost of living while increasing business between the two countries.

    Additionally, Israeli companies will gain access to UAE government tenders, it added.

    “The taking effect of the free trade agreement is important news for the Israeli economy, for the strengthening of ties with the UAE and is further testament to the importance of the Abraham Accords,” Cohen said.

    The Abraham Accords are a series of US-brokered deals Israel reached with the UAE, Bahrain and Morocco in 2020 to establish diplomatic relations.

    According to the Israeli Foreign Ministry, the UAE is Israel’s 16th largest trading partner, with bilateral trade volume reaching over $2.5 billion in 2022.

    Israel is currently in talks with Bahrain to sign a free trade agreement.

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    ( With inputs from www.siasat.com )

  • German Christian Democrats rewrite Merkel’s China playbook

    German Christian Democrats rewrite Merkel’s China playbook

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    BERLIN — Germany’s Christian Democrats, the country’s largest opposition group, are planning to shift away from the pragmatic stance toward China that characterized Angela Merkel’s 16 years as chancellor, claiming that maintaining peace through trade has failed.

    It’s a remarkable course change for the conservative party that pursued a strategy of rapprochement and economic interdependence toward China and Russia during Merkel’s decade and a half in power. The volte-face has been spurred by Moscow’s invasion of Ukraine and Beijing’s increasingly aggressive stance — both economically and politically — in the Asian region and beyond.

    According to a draft position paper seen by POLITICO, the conservatives say the idea of keeping peace through economic cooperation “has failed with regard to Russia, but increasingly also China.” The 22-page paper, which is to be adopted by the center-right Christian Democratic Union/Christian Social Union (CDU/CSU) parliamentary group in the Bundestag around Easter, outlines key points for a new China policy.

    In a world order that is changing after Russia’s full-scale invasion of Ukraine, Chancellor Olaf Scholz last year announced a Zeitenwende, or major turning point, in German security policy. Economy Minister Robert Habeck and Foreign Minister Annalena Baerbock, in particular, have stressed the necessity of a comprehensive China strategy, an idea already mentioned in the coalition agreement to form Scholz’s government. Their ministries have elaborated two different drafts, but a comprehensive strategy is not yet in sight.

    “We realize at this point in time, with some surprise, which is why we prepared and presented this paper, that the German government is significantly behind schedule on key foreign and security policy documents,” said CDU foreign policy lawmaker Johann Wadephul.

    The foreword to the position paper states that “the rise of communist China is the central, epochal challenge of the 21st century for all states seeking to preserve, strengthen, and sustain the rules-based international order.” The CDU/CSU parliamentary group is open to working out a “national consensus” with Scholz’s government. That consensus, the group says, must be embedded in the national security strategy and in a European China strategy.

    The relationship with China is described in the same triad fashion that was formulated by the European Commission in 2019 and is in the coalition agreement of the current German government. Under this strategy, the Asian country is seen as a partner, economic competitor and systemic rival.

    But the CDU/CSU group’s paper says policy should move away from a Beijing-friendly, pragmatic stance toward China, especially on trade. “We should not close our eyes to the fact that China has shifted the balance on its own initiative and clearly pushed the core of the relationship toward systemic rivalry,” the text states.

    Such an emphasis from the conservative group is remarkable given its long-held preference for economic cooperation and political rapprochement toward both China and Russia under Merkel. Before leaving office, for example, Merkel pushed a major EU-China investment deal over the line, though it was later essentially frozen by the European Parliament due to Beijing’s sanctions against MEPs.

    “I say to this also self-critically [that] this means for the CDU/CSU a certain new approach in China policy after a 16-year government period,” Wadephul said.

    The paper calls for a “Zeitenwende in China policy,” too, concluding that Germany should respond “with the ability and its own strength to compete” wherever China seeks and forces competition; should build up its resilience and defensive capability and form as well as expand alliances and partnerships with interest and value partners; and demonstrate a willingness to partner where it is openly, transparently and reliably embraced by China.

    The CDU/CSU paper calls for a European China strategy and a “European China Council” with EU neighbors for better cooperation. A central point is also strengthening reciprocity and European as well as German sovereignty.

    “Decoupling from China is neither realistic nor desirable from a German and European perspective,” according to the text.

    To better monitor dependencies, the paper proposes an expert commission in the Bundestag that would present an annual “China check” on dependencies in trade, technology, raw materials and foreign trade, with the overall aim of developing a “de-risking” strategy.



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    ( With inputs from : www.politico.eu )

  • France braces for another day of mayhem and violence

    France braces for another day of mayhem and violence

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    PARIS — France is bracing for fresh chaos Tuesday with a day of protests planned against Emmanuel Macron’s detested pensions reform, and trade unions calling for a general strike.

    Protests last Thursday descended into turmoil with clashes between police and protesters, and scenes of violence across the country. In the wake of the unrest, which resulted in more than 450 arrests, the French president was forced to cancel a state visit by King Charles III amid security concerns.

    Public transport, universities, schools and public services are expected to be disrupted again Tuesday. The impact of the industrial action is being felt across all sectors and areas of public life. A rolling strike of waste collectors in Paris has meant that trash is still piled high in parts of the French capital, and a strike at refineries has led to fuel shortages at some petrol pumps.

    Despite widespread unrest, the French president pledged last week that he would not backtrack on the pensions reform which raises the age of retirement to 64 from 62, saying it was “necessary” for the country to balance the books of its generous pensions scheme.

    The French government sparked outrage when it invoked article 49.3 of the French constitution to pass its pensions reform, in a controversial move that bypassed a vote in parliament it was expected to lose. The government narrowly survived two motions of no confidence in the National Assembly after the controversial move.

    Tuesday’s protest could be an indicator of whether Macron’s inflexibility whips up more discontent on the street or whether the protest movement is starting to subside. French police have been accused of using heavy-handed tactics and it is likely that students and pupils will join protests in greater numbers. On Saturday, a man was left in a critical condition after clashes with police at a French water reservoir project.

    Stalemate over pensions reform

    Ahead of the protests on Tuesday, Prime Minister Elisabeth Borne called for talks with trade unions and announced she would no longer use article 49.3 except when it comes to budgetary measures.

    “Obviously there are tensions over the reform, we need to listen,” she told AFP on Sunday. “[We need] to calm the country and give the French some answers promptly.”

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    A demonstration of Totalenergies striking employees outside the Gronfreville-l’Orcher refinery | Lou Benoist/AFP via Getty Images

    However, talks between the government and trade unions over the pensions reforms are at a standstill. Macron has said he is open to discussing a range of issues including working conditions, pay and work-related strain, but not the pensions reform. Trade unions say they would agree to talks only if the government agreed to re-examine the legal age of retirement.

    With no clear way out and in the wake of a string of violent incidents over the last weeks, there are fears within the trade unions that France may be facing a socio-political crisis similar to the Yellow Jackets movement that rocked the country in 2018-2019.

    Trade union leader Laurent Berger warned Monday that France was in “a total state of tension.”

    “There is a common will [with the government] to find an exit for this protest movement and not descend into a madness that might take hold of the country, with violence and resentment,” he warned in an interview with French channel France 2.



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    ( With inputs from : www.politico.eu )

  • Presentation of Delhi budget put on hold, Centre and AAP govt trade charges

    Presentation of Delhi budget put on hold, Centre and AAP govt trade charges

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    New Delhi: The presentation of the Delhi government’s budget for 2023-24, scheduled for Tuesday, has been put on hold, with the Arvind Kejriwal dispensation and the central government trading charges over allocations in various heads.

    Speaking at a News 18 programme on Monday, Chief Minister Arvind Kejriwal charged that the Centre was resorting to “gundagardi” and that it was for the first time in the history of the country that a budget of a government was put on hold. A video clip of his speech was tweeted by the Aam Aadmi Party (AAP).

    Sources in the Delhi government said the Ministry of Home Affairs (MHA) has stopped the Kejriwal government’s budget and it will not be tabled in the Assembly on Tuesday.

    As the chief minister lashed out at the Centre, sources in the MHA said the ministry has sought clarification from the AAP government as its budget proposal had high allocation for advertisement and relatively low funding for infrastructure and other development initiatives.

    Delhi Finance Minister Kailash Gahlot denied the charges as lies. The total budget size was Rs 78,800 crore, out of which 22,000 crore was earmarked for expenditure on infrastructure and just Rs 550 crore on advertisements, he said.

    The allocation for advertisement was the same as in last year’s budget, he added.

    In a statement, the MHA said, “The Lieutenant Governor, Delhi, had raised certain concerns of administrative nature on the proposed Budget, keeping in view the fiscal interest of the National Capital Territory on which MHA vide its letter dated 17.03.2023 has requested GNCTD to resubmit the Budget addressing these concerns for taking further action. The reply from GNCTD is awaited for last four days. For the benefit of the people of Delhi, the GNCTD should submit reply immediately.”

    In a separate statement, Gahlot said, “It is now learned that the MHA expressed some concerns on Delhi government’s budget and refused to give it approval through a letter sent to the Chief Secretary on 17 March. For mysterious reasons, the Chief Secretary of Delhi kept the letter hidden for 3 days.”

    “I learned about the letter only at 2 pm today… The file with MHA’s letter was put up to me officially only at 6pm today i.e. just the day before the budget was to be presented in Delhi Assembly. Subsequently, we have responded to MHA’s concerns and submitted the file back to Delhi’s LG, after CM’s approval, at 9pm today. The role of the Chief Secretary and Finance Secretary of Delhi in delaying Delhi’s budget ought to be investigated,” he said.

    A source in the LG office said, “The file was received in LG Sectt at 9:25 PM and was sent back to the Chief Minister at 10:05 PM, after approval of LG, for further action as per law.”

    Delhi government sources said that the finance secretary will write to the MHA on Tuesday for its approval and the budget will be tabled after its nod. They said budget will not be tabled on Tuesday.

    According to sources in the lieutenant governor’s office, LG V K Saxena approved the Annual Financial Statement for 2023-2024, with certain observations on March 9, and sent the file to the chief minister.

    The Government of Delhi, thereafter, sought the approval of the President as mandated by law by sending a letter to the Home Ministry.

    The Home Ministry conveyed its observations to the Delhi government on March 17. The LG office is awaiting for the file to be sent to it from the chief minister.

    According to LG office sources, Saxena flagged that “as against proposed Budget size of Rs 78,800 crore, the expenditure on Capital components is indicated at Rs 21,816 crore, which is only 27.68%…. Further, this also includes Rs 5,586.92 crore on account of loan repayment, which, if excluded will further reduce the Capital component to Rs 16,230 crore which is only 20% of the budget.”

    “Since Delhi is the country’s capital and also a large metropolis in which need for creation and improvements of infrastructure is extremely important, the allocation for Capital projects does not appear to be sufficient,” the LG said.

    “It is noted that expenditure incurred by the Directorate of Information & Publicity as per the Revised Estimate 2022-23 is Rs 272.21 crore against the Budget Estimate of Rs 511.64 crore. However, the allocation for the Budget Estimate 2023-24 is Rs. 557.24 crore, which seems incomprehensible and unjustifiable,” he further said.

    He claimed that the entire potential under various central schemes has not been fully utilised by Delhi.

    “A case in example, the flagship scheme of Ayushman Bharat’, has not yet been adopted by Delhi due to which CSS funds under health sector are not made available. The Union Territory needs to obtain all possible funds under Central Schemes to augment its resources and also to meet national goals,” he said.

    There was no clarity yet on when the budget will be presented in the Assembly. The ongoing budget session of the Assembly is scheduled to conclude on March 23.

    Delhi Finance Minister Kailash Gahlot on Monday tabled an outcome budget of the Kejriwal government and the economic survey, 2022-23.

    Earlier in the day, the Assembly was adjourned till 11 am on Tuesday.

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    ( With inputs from www.siasat.com )

  • Germany, Japan pledge to boost cooperation on economic security

    Germany, Japan pledge to boost cooperation on economic security

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    Germany and Japan agreed on Saturday to strengthen cooperation on economic security in the aftermath of tensions over global supply chains and the economic impact of the war in Ukraine.

    In the first high-ministerial government consultations held between the two countries, German Chancellor Olaf Scholz reached out to Tokyo to seek to reduce Germany’s dependence on China for imports of raw materials.

    “The current challenges of our time make it clear: It is important to expand cooperation with close partners and acquire new partners. We want to reduce dependencies and increase the resilience of our economies.” the German chancellor said in a tweet.

    Scholz and Japanese Prime Minister Fumio Kishida said they believe the agreement will allow both countries to diversify value chains in order to be able to reduce economic risks.

    In a joint statement, the two countries said they will work on establishing “a legal framework for bilateral defense and security cooperation activities,” including ways to protect critical infrastructures, trade routes and to secure future supply of sustainable energy.

    Germany’s decision to prioritize consultations with Japan came after the Asian country put forward an economic security bill last year aimed at securing the uptake of technology and bolstering critical supply chains. 

    Japan is Germany’s second-largest trading partner in Asia after China, with a bilateral trade volume of €45.7 billion mainly based on the import and export of machinery, vehicles, electronics and chemical products.

    The two leaders also exchanged views on the situation in Ukraine, cooperation in the Indo-Pacific region and the G7 meeting in Hiroshima scheduled for May.



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    ( With inputs from : www.politico.eu )

  • Why Xi Jinping is still Vladimir Putin’s best friend

    Why Xi Jinping is still Vladimir Putin’s best friend

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    As he jets off for a state visit to Moscow this week, China’s President Xi Jinping is doing so in defiance of massive international pressure. Vladimir Putin, the man Xi once called his “best, most intimate friend,” has just become the world’s most wanted alleged war criminal.

    The International Criminal Court issued an arrest warrant for Putin on March 17 for his alleged role in illegally transferring Ukrainian civilians into Russian territories. But that isn’t deterring Xi, who broke Communist Party norms and formally secured a third term as Chinese leader this month.

    But why is China’s leader so determined to stand by Putin despite the inevitable backlash, at a time when the West is increasingly suspicious of Beijing’s military aims — and scrutinizing prized Chinese companies like TikTok — more closely than ever?

    For a start, Beijing’s worldview requires it to stay strategically close to Russia: As Beijing’s leaders see it, the U.S. is blocking China’s path to global leadership, aided by European governments, while most of its own geographical neighbors — from Japan and South Korea to Vietnam and India — are increasingly skeptical rather than supportive.

    “The Chinese people are not prone to threats. Paper tigers such as the U.S. would definitely not be able to threaten China,” declared a commentary on Chinese state news agency Xinhua previewing Xi’s trip to Russia. The same article slammed Washington for threatening to sanction China if it provided Russia with weapons for its invasion of Ukraine. “The more the U.S. wants to crush the two superpowers, China and Russia, together … the closer China and Russia lean on each other.”

    It’s a view that chimes with the rhetoric from the Kremlin. “Washington does not want this war to end. Washington wants and is doing everything to continue this war. This is the visible hand,” Putin’s spokesman Dmitry Peskov said earlier this month.

    10-year bromance

    To understand Xi’s preference for Putin even though China’s economy is so intertwined with the West, analysts say it’s not just important to factor in Beijing’s vision for the future, but also to grasp the history that the Chinese and Russian leaders share.

    “They’re just six months apart in terms of age. Their fathers both fought in World War II … Both men had hardships in their youths. Both have daughters,” said Alexander Gabuev, a senior fellow at the Carnegie Endowment for International Peace think tank and an expert on Russo-Chinese relations. “And they are both increasingly like an emperor and a tsar, equally obsessed with Color Revolutions.”

    Their “bromance,” as Gabuev put it, began in 2013 when Xi met Putin toward the end of the Asia-Pacific Economic Cooperation summit in Bali — on Putin’s birthday. Citing two people present at the impromptu birthday party, Gabuev said the occasion was “not a boozy night, but they opened up and there was a really functioning chemistry.”

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    Russian President Vladimir Putin with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation Summit in Nusa Dua in 2013 | Mast Irham/AFP via Getty Images

    According to Putin himself, Xi presented him with a cake while the Russian leader pulled out a bottle of vodka for a toast. The pair then reminisced over shots and sandwiches. “I’ve never established such relations or made such arrangements with any other foreign colleague, but I did it with President Xi,” Putin told the Chinese CCTV broadcaster in 2018. “This might seem irrelevant, but to talk about President Xi, this is where I would like to start.”

    Those remarks were followed by a trip to Beijing, where Xi presented Putin with China’s first friendship medal. “He is my best, most intimate friend,” Xi said. “No matter what fluctuations there are in the international situation, China and Russia have always firmly taken the development of relations as a priority.”

    Xi has stuck to those words, even after Putin launched his invasion of Ukraine just over a year ago. Less than three weeks beforehand, Putin visited Beijing and signed what China once referred to as a “no limits” partnership. Chinese officials have steered clear of criticizing Russia — and they wouldn’t even call it a war — while echoing Putin’s narrative that NATO expansion was to blame.

    Close but not equal

    Concerns are mounting over Beijing’s potential to provide Russia with weapons. Last week, POLITICO reported that Chinese companies, including one connected to the government in Beijing, have sent Russian entities 1,000 assault rifles and other equipment that could be used for military purposes, including drone parts and body armor, according to customs data.

    Chinese and Russian armed forces have also teamed up for joint exercises outside Europe. Most recently, they held naval drills together with Iran in the Gulf of Oman.

    During Xi’s visit this week, the two leaders are expected to conclude up to a dozen agreements, according to Russian media TASS. Experts say Xi and Putin are likely to sign further agreements to boost trade — especially in energy — as well as make more efforts to trade in their own currencies.

    Xi is also expected to reiterate China’s “position paper” with a view to settling what it calls the “Ukraine crisis.” The paper, released last month, mentions the need to respect sovereignty and resume peace talks, but also includes Russian talking points such as dissuading “expanding military blocs” — a veiled criticism of U.S. support for Ukraine to potentially join NATO. There are also reports that Xi could be talking by phone with Ukraine’s President Volodymyr Zelenskyy after the Moscow visit.

    But Beijing’s overall top priority is to “lock Russia in for the long term as China’s junior partner,” wrote Ryan Hass, a senior fellow at the Brookings Institution, a think tank. “For Xi, cementing Russia as China’s junior partner is fundamental to his vision of national rejuvenation.”

    To achieve this, Putin’s stay in power is non-negotiable for Beijing, he wrote: “China’s … objective is to guard against Russia failing and Putin falling.”

    What better way, then, to show support than attending a state banquet when your notorious friend needs you most?



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    ( With inputs from : www.politico.eu )

  • Macron faces no-confidence votes amid nationwide protests

    Macron faces no-confidence votes amid nationwide protests

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    PARIS — Emmanuel Macron’s government faces several motions of no confidence in the National Assembly Monday after his government forced through a deeply unpopular pensions reform bill last week.

    Protesters took to the streets in major cities over the weekend, after the government invoked a controversial constitutional maneuver to pass its pensions reform bill in what was widely seen as a move likely to inflame social unrest. Industrial action is expected to disrupt public transport, refineries, universities and waste collection this week, as trade unions hope to strong-arm the government into withdrawing the pensions reform.

    On Saturday, more than 100 people were arrested in Paris after a demonstration by several thousand protesters against the reform turned violent.

    The 573 lawmakers of the French National Assembly will vote on two motions of no confidence Monday which could trigger the resignation of Macron’s Prime Minister Elisabeth Borne and her government. Though the French president would not be forced to resign in case of a defeat, a successful motion of no confidence would trigger a deep political crisis for Macron.

    On Saturday, Finance Minister Bruno Le Maire said the reform was “vital” for the country and called on MPs to “face their responsibilities,” in an interview with Le Parisien.

    “There will be no majority to bring the government down, but it will be a moment of truth,” Le Maire said with the reference to the votes on Monday. “Is it a good idea to overthrow the government and cause political disorder over the pensions reforms? The answer is clearly no,” he added.

    Macron wants to increase the legal age of retirement to 64 from 62 and extend contributions for a full pension in order to balance the accounts of the pensions system. The reform is a cornerstone of the French president’s second mandate and failure to pass it would have repercussions for the rest of his mandate.

    Amid scenes of anger and rebellion in parliament, his trusted lieutenant Borne announced on Thursday the government had decided to invoke Article 49.3 of the constitution to pass legislation without a vote, putting an end to weeks of heated and acrimonious debate. Invoking Article 49.3, however, allowed lawmakers to table a motion of no confidence within 24 hours.

    All eyes on the conservatives

    Macron’s Renaissance party lost its majority in the National Assembly in parliamentary elections last year and has faced several motions of no confidence in recent months. In a sign of the deepening crisis in France, it is the first time that the several opposition parties have tabled a motion of no confidence together.

    On Friday a small centrist opposition group submitted a cross-party motion supported by leftwing parties, which is also expected get the support of the far right National Rally, after RN leader Marine Le Pen announced that her party would vote for “all the motions of no confidence.”

    “A vote on this motion will enable us to put an honorable end to a deep political crisis,” said the centrist MP Bertrand Pancher as he submitted the motion.

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    A police officer attempts to extinguish flames at the entrance of the town hall of the 4th arrondissement of Lyon | Jeff Pachoud/AFP via Getty Images

    Macron’s opponents need the backing of 287 MPs to topple the government — a bar they are not likely to pass given the deep political divisions in parliament. The National Assembly is split between Macron’s Renaissance coalition, the far-right National Rally and the left-wing Nupes coalition.

    In addition to getting the backing of the left and the far right, a cross-party motion would need the support of 27 conservative Les Républicains lawmakers to pass. But only 10 are planning to vote for the motion, said a conservative MP who wanted to remain anonymous due to the sensitivity of the topic in an interview with Playbook Paris.

    MPs are also expected to vote on a second motion of no confidence submitted by the National Rally, that is widely seen as unlikely to pass.

    If the government survives the votes on Monday, it will still face a wave of protests this week and the risk of more social unrest. On Friday, the hard left CGT trade union called for “visible actions” ahead of a day of nationwide protests and strikes planned for Thursday.



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    ( With inputs from : www.politico.eu )

  • Macron on the brink: How French pensions revolt could wreck his presidency

    Macron on the brink: How French pensions revolt could wreck his presidency

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    PARIS — French President Emmanuel Macron will face a moment of reckoning Thursday as lawmakers gear up for a final vote on the government’s deeply unpopular pension reform.

    The controversial bill, a centerpiece of Macron’s second term, has sparked weeks of nationwide protests led by trade unions and faced intense criticism from both the far left and the far right in the National Assembly.

    The French president wants to increase the legal age of retirement to 64 from 62 and extend contributions for a full pension in an effort to balance the accounts of France’s state pensions system — among the most generous in the world. According to projections from France’s Council of Pensions Planning, the finances of the pensions system are balanced in the short term but will go into deficit in the long term.

    Despite government concessions on various aspects of the bill in recent weeks, opposition to the reform remains very high, with polls saying two-thirds of French citizens oppose it.

    Speculation is running high that Macron might not have enough support in the National Assembly, and may choose a constitutional maneuver to bypass parliament — in a move that could unleash a political storm in France.

    On Thursday, the French Senate and the National Assembly are expected to cast a crucial vote on the second reading of the bill, after the Senate voted in favor last week. The outcome will determine the shape of Macron’s second term and stands to bear heavily on his legacy.

    The worst case: Macron loses the vote in parliament

    Losing the parliamentary vote would be a stunning defeat for the French president, who pinned his bid for a second term on his promises to reform France’s pensions system. But political commentators have been speculating in recent days that Macron’s Renaissance party doesn’t have enough votes to pass the bill.

    The French president lost its absolute majority in the National Assembly in parliamentary elections last June. He has since been forced into making ad-hoc deals with MPs from France’s conservative party Les Républicains. But the once-mighty conservatives appear split on the reform, despite assurances this week from their leader Olivier Marleix that there was “a clear majority” backing the bill.

    A defeat in parliament would have seismic and long-term repercussions for Macron’s second term and it is likely that the president’s trusted lieutenant Prime Minister Elizabeth Borne would have to resign in such a scenario. Party heavyweights however say they will not shy away from seeking a vote.

    “There will be a vote, we want a vote, everyone must take its responsibilities,” said Aurore Bergé, leader of the Renaissance group in the National Assembly.

    “There can be an accident … we’ll manage it as we can,” admitted Jean-Paul Mattei, a centrist MP who belongs to Macron’s coalition, with reference to a defeat in parliament.

    However, this is the most unlikely scenario as expectations are that the government will bypass a vote if they sense that they are short on votes.

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    Protestors hold an effigy of French President Emmanuel Macron, during a demonstration on the 8th day of strikes and protests across the country against the government’s proposed pensions overhaul in Paris on March 15, 2023 | Alain Jocard/AFP via Getty Images

    Pretty bad: Macron bypasses parliament and loses credibility

    In the face of a potential defeat in the National Assembly, Macron has a nuclear option: invoke article 49.3 of the French constitution. This mechanism allows the government to force through legislation without submitting it to a vote.

    While the constitutional maneuver may seem like an easy way out, it’s a highly risky move as it allows lawmakers to table a motion of no confidence within 24 hours. Macron’s government has faced down motions of no confidence in the past but the stakes are much higher this time around.

    Beyond surviving a motion of no-confidence, Macron and Borne will also come under fire for refusing to submit to the democratic process.

    According to Frédéric Dabi, general director of the IFOP polling institute, the impact on public opinion if the government uses the 49.3 article as opposed to passing a tight vote in parliament would be “radically different.”

    “Public opinions on the 49.3 article have changed … it is regarded as a tool to brutalize the National Assembly: it’s now seen as authoritarian instead of merely authoritative. People want more transparency, more democracy today,” he said.

    France’s hardline unions would no doubt use this to stoke unrest and call for further strike action.

    Trade union leader Laurent Berger has warned the government against using the 49.3 article, saying that it would be “incredible and dangerous.”

    “Nobody can predict what will happen, the protest movement seems to be running out of steam, but if the government invokes article 49.3 it could be read as forcing the issue and may relaunch the protest movement,” said Dabi.

    Still not great: Macron wins vote but faces mass protests

    If the French president wins the vote in parliament, it’ll be seen as a victory but one that may completely drain his political capital, and whip up protests on the streets.

    “It’ll be a victory for Macron, but it’ll only bear its fruit in the long term. In the short term, he’ll face a tense country where relations have become very strained,” said Chloé Morin, a writer and political analyst.

    Trade union leader Berger has said that he would “take on board” the result of Thursday’s vote in parliament. But protests, which have been almost weekly since January, may continue nonetheless across the country in an effort to force the government into backing down and withdrawing the text.

    Morin thinks it is unlikely there will be “an explosion of protests” after the vote as people are resigned to seeing it pass.

    GettyImages 1248236061
    French police officers intervene during a protest by local council employees against the government’s retirement reform in front on the prefecture in Seine Saint-Denis, in Bobigny, a surburb of Paris on March 14, 2023 | Thomas Samson/AFP via Getty Images

    “However, the protest movement might become more radical with lightning protests or sabotages, led by a minority in the citizens’ movement,” said Morin.

    In October last year, industrial action in France’s refineries led to nationwide shortages at petrol stations, forcing the government to intervene in what was seen as Macron’s biggest challenge since his re-election last year.

    There are dangerous precedents for Macron too. In December 2019, the government was forced to abandon a new green tax when faced with the explosive Yellow Vests protests that shook the political establishment.



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    ( With inputs from : www.politico.eu )

  • Macron’s defiant show of force in parliament exposes a weakened president

    Macron’s defiant show of force in parliament exposes a weakened president

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    PARIS — French President Emmanuel Macron’s decision to bypass parliament and impose his deeply unpopular pensions reform has revealed an uncompromising and weakened leader who now faces severe backlash from emboldened opposition lawmakers and protesters.

    Macron had vowed to abandon his top-down approach to politics and work with opposition parties during his second term. But when it comes to old-style politicking, Macron’s troops still have a lot to learn.

    Despite intense lobbying efforts with MPs and frantic meetings at the Elysée on Thursday and in the weeks leading up to the decisive moment, the French president and his stalwart lieutenant Prime Minister Elisabeth Borne faced the likelihood of a defeat in parliament and decided instead to invoke a controversial constitutional tool — article 49.3 — to bypass a vote.

    “My political interest would have been to submit to a vote … But I consider that the financial, economic risks are too great at this stage,” Macron privately told ministers according to a participant at the meeting.

    Macron’s flagship pensions reform aims to increase the legal age of retirement to 64 from 62 and extend contributions for a full pension in an effort to balance the accounts of France’s state pensions system. Macron’s Renaissance party lost its absolute majority in the National Assembly in parliamentary elections last year, but the government was able to pass legislation in recent months with the support of the conservative party Les Républicains. It appears, however, that in the nail-biting run-up to the vote, there were concerns the president wasn’t able to rally enough troops in favor of the bill.

    Arriving in parliament on Thursday, Borne faced scenes of anger and unrest in the National Assembly as she made her announcement triggering article 49.3. Far-left lawmakers from the France Unbowed party booed and chanted the national hymn the Marseillaise as far-right National Rally MPs shouted “Resign! Resign!” The speaker of the house was forced to suspend debates to allow Borne to make her speech.

    “We can’t take the risk of seeing 175 hours of parliamentary debate come to nothing,” Borne said.

    After the announcement, opposition MPs vowed to continue the battle against the reform, either in parliament, by supporting a motion of no-confidence, or in the streets.

    The leader of the far-right National Rally, Marine Le Pen, slammed the move as a “personal failure” for Macron. “It’s his reform, he’s the one who proposed it and defended it during his campaign,” she told reporters at the National Assembly.

    Spontaneous protests erupted Thursday evening in several cities across France, including Paris, where thousands of protestors descended on the Place de la Concorde after the move, clashing with police and setting fire to scaffolding. Trade unions called for a day of protest on March 23, undeterred by Macron’s decision to push through the legislation.

    Article 49.3, ‘a denial of democracy’

    Invoking article 49.3 is widely seen as a perilous move for the government as it allows MPs to put forward a motion of no-confidence within 24 hours and risks radicalizing protest movements in France. Trade unions have already shown great unity and led almost weekly marches and strikes, bringing out hundreds of thousands of citizens to the streets. In Paris, a strike by garbage collectors has seen an estimated 7,000 tons of garbage left on the street.

    While the French constitution does allow governments to bypass parliament under certain conditions, its use is increasingly seen as undemocratic in France amid social tensions and the growing mistrust of politicians.

    “The government’s use of the 49.3 procedure reflects the failure of this presidential minority,” Charles de Courson, a longtime independent lawmaker, told the BFMTV news channel.

    “They are not just a minority in the National Assembly, they are a minority in the whole country. The denial of democracy continues,” he said.

    Speaking ahead of the vote, Frédéric Dabi, general director of the IFOP polling institute, said that opinions on invoking article 49.3 — as opposed to passing a tight vote in parliament — are “radically different.”

    “Public opinions on the 49.3 article have changed … it is regarded as a tool to brutalize the National Assembly: it’s now seen as authoritarian instead of merely authoritative. People want more transparency, more democracy today,” he said.

    But the show of force also exposes a weakened president, who after having lost a majority in parliament and amid low popularity ratings, was unable to turn the tide of public opinion in France.

    Surviving now, and later

    In the short term, the government will have to survive several motions of no-confidence that are expected to be voted on Monday. Macron’s government has faced down motions of no confidence in the past but the stakes are much higher this time around.

    “It’s maybe the first time that a motion of no-confidence may overthrow the government,” Green MP Julien Bayou told reporters, adding that the government was “prepared to wreak havoc” in the country.

    Longer term, the move destroys prospects of a closer alliance between Macron’s Renaissance party and the conservative Les Républicains following a string of ad-hoc deals in recent months. In a worrying sign for Macron’s second term, as the debates on the pensions reform reached a climax, the leadership of the conservative party could not muster its own faithful despite concessions on the bill from the ruling party.

    The great irony for Macron — needing partners and not finding them — is that he is the man who upended France’s political landscape by crushing the traditional left-wing and right-wing parties in 2017.

    The dilemma for Macron is how he will get anything done in the next four yours of his presidency, given the reinvigorated opposition he is sure to face in a parliament dominated by the far left and the far right, and without reliable coalition partners.

    Perhaps the only silver lining for Macron is the view from abroad.

    “On the international scene, it’s a sign that France can make reforms, even if, frankly, many may think we are having a nervous breakdown over something so small, given that the government has made so many concessions [on the bill],” said Chloé Morin, a writer and political analyst ahead of the vote.

    “Everybody knows that [reforming pensions] in France is difficult …That’s what’s at stake for Macron: he is a president who is building his legacy,” she said.



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    ( With inputs from : www.politico.eu )