This very weekend, when millions in France are either coming back from, or leaving for, their annual summer holidays, the Prime Minister Manuel Valls "leaks" in a speech that the next unemployment figures will be bad and that tough times are ahead !
The expected upswing in trade has not materialised in the EU or in France. Official figures are expected on August 14, 2014. The timing of this bad news, since most Politicians are now away from their desks, means one can only speculate on the financial consequences with which "holiday makers" will be confronted in September 2014 !
However, there are other purely French problems which explain that President Holland fettered and cannot do what is expected and needed. Trade Unions hold the Whip. They never yield when it means modernising old habits that would make work a harder or less profitable task, even if France afterwards could become more competitive worldwide.
Where has President Hollande failed ?
- He has failed to control Trade Unions,
- He has not streamlined the Civil Service,
- He has not made massive State Investments, to galvanise industries and sub-contractors,
- Trade Unions accuse him of favouring only private industries.
- Can he now still tax the Middle Classes even more for the benefit of the deprived Lower Classes ?
The alternatives facing President Hollande are;
- France risks infringing the Golden Rules of the EU and the EUROZONE by increasing borrowings,
- Increasing taxes and/or cutting benefits to cover current shortfalls in State revenues could quickly lead to Social Unrest !
There is one hidden upside for the Socialists in this ongoing saga. The Opposition is in a state of complete confusion. All possible "Leaders" are fighting to position themselves for the next Presidential Elections ! Younger unblemished candidates are watching and holding themselves back !
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