French metro and railway workers have been on strike for almost a month to preserve privileges from an era when the trains ran on coal.
The people who suffer the most are workers on modest incomes who don’t own a car and normally commute into Paris by train; small businesses and shops which are understaffed; families that couldn’t get together for Christmas.
The unions behind the strikes claim they are fighting a “president of the rich” — Emmanuel Macron — on behalf of “the people”.
Pensions are at the center of Greece’s latest dispute with its creditors.
The Greek Kathimerini newspaper reports that the International Monetary Fund’s managing director, Christine Lagarde, stressed to Prime Minister Alexis Tsipras during a recent meeting at the World Economic Forum in Davos, Switzerland that his government’s proposal for pension reform was inadequate.
The IMF jointly administers Greece’s €86 billion bailout with the European Union.
But Tsipras has said Greece won’t succumb to “unreasonable and unfair demands” and reportedly told Lagarde “there is no way” he can cut pensions for current retirees.
Projections released by the Congressional Budget Office on Tuesday underscore the need for comprehensive reform of America’s biggest spending programs.
The CBO, an independent outfit, warns that the federal deficit will jump to $544 billion next year, or 2.9 percent of gross domestic product — the first time since 2009 that the shortfall is expanding relative to the size of the economy.
Over the next ten years, deficits would add up to $9.4 trillion unless significant policy changes are made.
America’s fiscal crisis looks less pressing than only a few years ago. A combination of spending restraint and tax increases that has resulted from messy compromises between President Barack Obama, a Democrat, and the Republican Congress should help push the deficit down to a manageable 2.5 percent of economic output this year.
Wednesday’s Republican presidential debate hosted by CNBC was easily the worst so far this year. The moderators seemed more interested in catching the candidates in hypocrisies and discrediting their looniest proposals than encouraging a substantive debate — but at the same time let some of the most outlandish claims go unchallenged.
Protests by French farmers against low dairy and meat prices are dividing Europe. While similar actions are expected in neighboring Belgium, Germany and the Netherlands are irked that the Paris government is enacting protectionist measures in an attempt to quell the unrest. Read more “French Farmers’ Protests Divide Europe”
Elections in France this year and next could doom any chance of deeper economic reform even as the country seems incapable of bringing down unemployment.
Stuck at over 10 percent since he came to power in 2012, the high jobless rate has weighed down on President François Hollande’s popularity. With an approval rating under 20 percent, the incumbent seems unlikely to win reelection in 2017. But he is still running and should want to avoid dividing his Socialist Party on economic policy.
The next regional elections are due in December. Called after a reorganization that saw the number of regions cut from 22 to thirteen, the Socialists are gearing up for another defeat. They have lost all local elections since Hollande beat the conservatives’ Nicolas Sarkozy in 2012 with 51.6 percent of the votes.
Despite Greece’s resounding “no” to more austerity, European leaders are trying one last time this week to get the country to sign up to another bailout and keep it in the eurozone.
They shouldn’t bother.
If Sunday’s referendum made one thing clear, it’s that Greece just doesn’t belong. After more than 60 percent of Greeks allowed themselves to be deluded by far-left leaders who said the vote wasn’t about the euro at all but rather a chance to stick it up to the faceless institutions that have “humiliated” this nation of eleven million for five years by trying to make it see reality, the generous thing to do would be to prepare for an orderly Greek exit from the single currency. Read more “Time to Let Greece Go: It Doesn’t Belong in the Euro”