Disappointing Sarkonomics

French president Nicholas Sarkozy is quite possibly the greatest of European leaders today. He has regained for his country a preeminent position within the European Union and took little time to repair the transatlantic discord that so disturbed French foreign policy since the start of the Iraq War in 2003. On the economic front however, his achievements are less impressive.

Although foreman of France’s right-wing, Sarkozy has displayed little love for free-market economics since the recession struck almost two years ago. Indeed, he blames the “freewheeling Anglo-Saxon” model for today’s trouble and hopes to demonstrate “the victory of the European model” — which, probably, means the victory of the French model in his view.

France has comfortably overcome the townturn thanks to that model: the country has a huge public sector that currently employs about one in every five workers. Besides, Sarkozy has shown himself willing to protect the French private sector also, demanding, for instance, that automaker Renault create jobs at home in exchange for stimulus funding. The relative lack of unemployment comes at a cost though: the public debt has naturally skyrocketed while Paris maintains an 8.5 percent deficit on the budget. That in spite of demands from Brussels that it be cut to 3 percent in accordance with European regulation.

Sarkozy then turns out to be something of an old-fashioned Frenchmen after all. That is not to say that he isn’t refreshing at all. Abroad, the president has persued an intelligent and most successful foreign policy while at home, he has fulfilled many of his campaign promises, although not always with the most stunning of results. His large-scale effort to cut on public expenditure for example has been practically brought to a standstill since the first signs of economic anxiety became apparent.

In Newsweek Tracy McNicoll concludes that Sarkozy really has no economic principles. “Sarkozy has the flexibility to win battles but not the single-minded vision to define or win a war, as Ronald Reagan or Margaret Thatcher did.” Perhaps. Then again, flexibility alone seems a lot to be grateful for these days.

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