Saturday 13 December 2014

Is France going down the drain?


I once had an idea for a book titled, "How France made me a capitalist?".  Recent news stories on the BBC; "France's Macron faces baptism of fire over economy reforms" and "French 'mess' threatens real civil strife" seem to suggest that I should write that book.
The present socialist government is trying to push through reforms that they hope will reboot our failing economy.  Unfortunately as always when a French government tries to introduce a reform self-interested groups are protesting to protect their "acquis".  These "acquis" are work benefits, such as early retirement for TGV train drivers, and cheap or even free electricity for EDF staff.
The main objection to the current reform is that it will allow extended Sunday opening for shops.  Today shops can open five Sundays a year with the permission of the "Prefect" in each region.  The reform proposes to raise this number to twelve.  The opponents believe Sunday is sacred and should be spent with families, ignoring the fact that many people work on Sundays already, and few people spend their Sundays in church or with their families.   Sunday opening would create jobs and perhaps raise consumption.  Personally I think the opponents are missing the real problem with the reform seven days of extra shopping is not going to save the French economy.  This reform is minor tinkering with a system that needs a major overhaul.
One aspect of this major overhaul was in the reform but has been pushed aside faced with opposition of Pharmacists.  It is the liberalisation of Pharmacies, unlike in the United Kingdom; supermarkets in France cannot sell over-the-counter medicine.  The monopoly is held by Pharmacists who often overprice these medicines, knowing that there is no competition and they are likely to be reimbursed by customer’s health insurance.   If this reform was passed over-the-counter medicines would become cheaper and this would save the indebted health service money.  Pharmacists are not the only monopoly and the reform seeks to open up other professions.  However it faces strong opposition from the members of all these professions.
I have been in France 13 years now and as my children grow up I really wonder whether it is a good idea to stay.  Many young educated people I meet are planning to go overseas after their studies, I wonder if they will come back, and what the France that they come back to will be like.  The most frightening aspect of France's present situation is that the only politician with the courage to make major changes is Marine Le Pen of the Front National.   I foresee a bleak economic future for France and a FN presidency if someone does not step up to the plate and pass reforms that will make them deeply unpopular but might just save France from itself.

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