When tragedy turns into farce

By: Wolfgang Münchau

Nicolas Sarkozy came to power promising a serious reform agenda - rupture everywhere, good and bad. There was hope in France that he would become an effective global political leader. I still recall on election night, how a very pompous French businessman declared that Sarkozy would change absolutely everything, , and become Europe's undisputed leader.

 

I never believed any of it, and wrote as much in my column in the Financial Times. But even I am surprised, how little he achieved in terms of his domestic agenda. After his election victory, I was told by a number of serious French economists, who I respect, that Sarkozy may be irritating. He may be bad for eurozone governance. And, of course, he is wrong about the ECB, and about competition. But all that does not matter if he managed to pull off one big feat - reform the French labour market. The message was: Please, give him a chance.

 

My scepticism was rooted in the suspicion that an unstable, hyperactive guy in permanent search for publicity stunts is not the best person to deliver reform. We have been through this in Europe time and again. Reform is the most unglamorous side of politics - often best done by unglamerous politicians. It requires seriousness, ability to prioritise, a trainspotter's interest in the nitty gritty detail of policy.

 

In France, reform has degenerated into a show. There is the spectacle of reform, but not reform itself. My own list of priorities is not particularly original. But then, this game is not about originality. Many economists I know would probably agree with at least two out of the following three reforms:

 

1. The abolition of the 35-hour week.

2. The reform of the archaic French labour contract

3. Fiscal consolidation

 

France is probably not going to get any of them. The promised modernisation of labour contract law has now been superseded by an ultra-soft agreement between the social partners. There are some minor changes in the 35-hour week, but the vast majority of French companies do not benefit. And the French budget position is worsening at a time when Germany's is improving.

 

It might have worth taking a hit in the approval rating, or loosing the municipal elections, for any or all of these policy goals. But Sarkozy has taken a hit, not because of Carla Bruni or his jet set lifestyle. The French have realised that they have elected a leader, who has lost interest in his agenda.

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