French President Acknowledges Disappointing Performance During First Year in Office

French President Nicolas Sarkozy yesterday addressed the public in a televised interview to mark his first year in office. As demanded by French newspaper Le Monde, the interview was "less Nicolas, more Sarkozy", portraying the more formal image of the president the public wants to see. Sarkozy addressed the criticism that a number of his promised policies have not materialised; his election victory was founded on his pledge to bring about a “rupture with the past” and to turn the French “supertanker” into a “speedboat”. In line with his address in January, when he claimed that he could not change the current situation overnight, Sarkozy once again asked the public for patience, trust, and support for the ruling centre-right Union for a People’s Movement’s (UMP) planned changes.

Quantity Rather than Quality?

Sarkozy claimed that 55 areas have been tackled since the government took office in 2007, defending his policy of addressing them almost all at once. He blamed the slow progress of his policies on global events such as the credit crunch, the sharp rise in oil prices, and the continued flight of the euro, the effects of which he is strenuously trying to stem. Sarkozy stressed that he had expected major obstacles on the way to fulfilling his aim of a balanced budget by the time of the next general election in 2012, and said that he remains adamant that the government can bring about the changes investors in particular are waiting for. The president addressed a number of current hot topics:

• Employee Ownership of Companies: Sarkozy announced that the cabinet will present a draft text on greater employee ownership of companies in the next two weeks, allowing employees and shareholders to obtain up to one-third of a company’s profits each. In order to induce more small and medium-sized enterprises (SMEs) to join the scheme, Sarkozy is proposing tax cuts for those who sign up.
• Immigration: Sarkozy remains clear that the government will not offer a blanket legalisation of illegal workers but will continue to assess requests on a case-by-case basis.
• Genetically Modified Food: The president fully supports the parliament's recent decision on genetically modified (GM) products, and opposes cultivation of GM products in fields. However, with an eye towards investors, he said that he does not support a total ban, as called for by ecological groups.
• Overtime Work: According to Sarkozy, the low purchasing power in the country could be remedied by more overtime work. He lauded the introduction of tax-free overtime work for increasing the purchasing power of 500,000 employees by 5.5 billion euro (US$ 8.6 billion) and urged citizens to work more.
• Unemployment: Sarkozy announced stricter regulations on unemployment benefits, as presented by Employment Minister Laurent Wauquiez recently (see France: 15 April 2008: French Labour Minister Prepares Stricter Eligibility Rules for Unemployment Benefits). The president supports the idea of gradually curbing benefits for jobseekers along a strict timeline: after three months of registered unemployment, jobseekers should be obliged to accept jobs for which the offered salary is at least 95% of the previous salary received. After six months of unemployment, jobseekers should be forced to accept any job within one hour from their homes via public transport.
• Pension Reform: Sarkozy remains adamant that he will raise the length of contribution for eligibility for pension benefits from 40 to 41 years.
• Wage Negotiations: Sarkozy warned employers that the government will reconsider its policy on tax relief for companies that do not hold regular wage negotiations with trade unions at their branches.

Sarkozy also promised greater government cohesion in the wake of the recent rifts within the ruling party over his approach in the run-up to the regional elections in March, and he pledged improved communication between all departments to ensure the smoother application of policies.

Outlook and Implications

Sarkozy tried his utmost during the 90-minute interview to tap back into the sentiment that secured his victory in May 2007. The government is currently planning a raft of new measures later this year, and Sarkozy highlighted some of these (see France: 17 March 2008: Municipal Election Results Reshape French Political Landscape). Much has changed since his election—both economically and in his private life—that has damaged his popularity. Although his profile has risen abroad thanks to successful state visits to, among others, China and the United Kingdom, he is still performing fairly badly in polls at home. He sought in this interview to regain his image as a dynamic and determined policymaker among French citizens who are tired of the slow progress of his reform plans, but the electorate has learnt that Sarkozy is a brilliant orator but seems to lack the ability to push his policies through.

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