French President François Hollande pledged to reverse the country’s surging unemployment rate as he gave his first New Year’s televised address at the Elysée Palace on Monday.
Speaking of the “serious and legitimate” concerns of the public, Hollande acknowledged the “fits and starts” of his first six months in office, but said France would emerge from the financial crisis “sooner and stronger” than expected because of the course he and his government had taken. “We’ve set the course – jobs, competitiveness and growth – and I will not deviate. It’s the future of France.”
With the number of jobless breaking the three-million barrier for the first time this year, Hollande said “all our efforts will be aimed at a single objective: reversing the unemployment trend within a year, whatever the cost”.
He also promised to tackle what he described as “useless spending” in government. “The French public’s money is hard earned and must be put to the service of a thrifty and exemplary state”.
“Those with more will have to contribute more”
But speaking of his controversial 75% income tax levy, which was overturned by France’s highest legal body on Saturday, the Socialist president said that while the law would be “redesigned” its objective would remain the same. “Those with more will have to contribute more,” he said.
Hollande also stressed the increase in teacher numbers he promised during his election manifesto and touted his delivery of promises to allow 60-year-olds the right to retire if they began working early, along with the return of French combat troops from Afghanistan.
Briefly mentioning the controversial issues of same-sex marriage and euthanasia, Hollande stressed the importance of civil rights. “We have all it takes to succeed,” he said, adding that France is most successful “when it moves forward on equal rights”.
Ending his address with a thought for the “sick, lonely, disabled and unassisted” people in France, the French president said social security was as important as a competitive economy and called for a “collective effort” to make that balance possible.
6 comments:
looks like the fabianistas (including the Telegraph I'm
afraid) in the UK press will not rest....they must
talk us into a recession no matter what.
More often than not they will NEVER mention unemployment....since of course Unemployment is now the same rate as in the US....and LOWER now than when
Labour left office.....
Osbourne gambled.....he gambled that the US economy would recover before the next election and therefore pull the UK economy along with it..... Let's look at some of the numbers....
Unemployment: UK 7.8%,,,,,, Eurozone 11.7%....US 7.8%
GDP Y on Y: UK .0%......Eurozone -.6%....US 2.6%
GDP Q on Q: UK .9%......Eurozone -.1%....US 3.1%
Debt to GDP: UK 85%......Eurozone 87.3%.....US 103%
Triple-dip threat rises as UK service sector shrinks
Britain's services sector shrank for the first time in two years in December, increasing the likelihood that the country is "triple-dipping" back into a recession.
It is the first time the services sector index has fallen below the 50 mark - which indicates a contraction - since December 2010, when unusually heavy snow disrupted business. Photo: © Alamy
By Emma Rowley
6:16PM GMT 04 Jan 2013
140 Comments
Concerns the UK is “triple-dipping” back into recession rose on Friday, as a closely-watched gauge of the services sector showed output fell for the first time in two years.
Markit’s purchasing managers’ index (PMI) threw up a reading of 48.9 for December, where anything below 50 signals activity in the sector contracted.
Nick Beecroft, an analyst at Saxo Capital Markets, called it a “pretty disastrous” result. The reading signalled that, except for 2010’s snow-hit December, activity in the sector is shrinking for the first time since early 2009. Then, stock markets were only just recovering from their post-crisis lows.
Despite the pick-up seen in the previous day’s manufacturing PMI, the latest surveys together tally with a fall in the UK’s headline growth in the fourth quarter, according to economists. Services companies from insurers to hairdressers account for around three quarters of the UK economy, dwarfing manufacturing at 10pc.
“We still expect a 0.4pc fall [in GDP],” said Vicky Redwood at forecaster Capital Economics. “Rather than just reflecting an unwinding of the Olympics boost, this seems to reflect more of an underlying weakness.”
The slide in service sector output was driven by new business dropping off for a second month in a row, with firms reporting clients are wary of spending amid economic uncertainty.
Sentiment among services firms remained unmoved in December from November’s 11-month low, the survey showed, with headcount edging down for a third time in four months as businesses chose not to replace leavers. Expectations for 2013 were likewise muted.
Mr Beecroft said businesses might have been spooked by the looming 'fiscal cliff’ threat from the US. “Now that the clouds have temporarily cleared a little on that score, maybe we can see a subsequent bounce back in confidence,” he said.
Nonetheless, data from the US showed that its own service sector activity expanded in December by the most in nearly a year, driven by a jump in new orders and hiring.
The UK’s disappointing services PMI did not include retail companies, however. There have been encouraging signs from John Lewis and Next before the rest of the pack report on Christmas trading next week.
The fourth quarter GDP figure is released on January 24.
The US economy added 155,000 jobs in December, continuing a trend of stubbornly slow improvement.
The Bureau of Labor Statistics said the rate of unemployment remained steady at 7.8% in December. November's rate was revised up to 7.8% from an initially reported 7.7%.
The figures are largely in line with analysts' expectations, with broadly distributed gains in employment across sectors from construction and manufacturing to healthcare.
"It was a decent employment report", John Lanski, chief economist at Moody's Capital Markets said. "I cannot see any glaring negatives in this report."
In all, employers added 1.84 million jobs in 2012, in line with the previous year. It represents steady, if not stellar, improvements ion the jobs market. Nonetheless the gains – at roughly 153,000 additional jobs a month – represents continued momentum in the recovery from the 2007 to 2009 recession.
It also suggests that employers were not spooked by December's fiscal cliff negotiations, which had brought America to the brink of triggering an austerity package that many economists said could plunge the US back into recession.
"Fiscal cliff related uncertainty isn't apparent. It certainly doesn't jump out of you in the report," Lanski said.
There were some indications in the report of the sluggish and fragile nature of the recovery. Despite the headline rate holding steady, the number of Americans out of work increased by 164,000 to 12.2 million.
And the number of long-term unemployed remained essentially unchanged at 4.8 million, accounting for 39.1% of those out of work.
Taxes of every type are cumulative, something people actually paying them are well aware of. The whole concept of "the Bush tax cuts" is nonsense, as it is Constitutionally impermissable for any Congress to encumber a subsequent Congress. Every current rate is there at the will of the current Congress in session, as they can change it by passing a bill at any moment. To spend another moment laying ten years of tax rates on a guy who has been out of office for four years is fatuous (though convenient) nonsense.
The taxes went up for every American this week. Nobody gives a shit about who had their hands in our wallets, because it is another multi-party dick measuring, finger-pointing exercise where everybody pulled the trigger but nobody is to blame.
How much is enough? Do you have a number or a rate, or is it the simple fact that there will never be enough to pay for your bright ideas? Is it your ideology to always rip the intentions of anybody questioning both your greed and generosity with other people's money?
Put an ultimate number out there that will satisfy your desire to buy stuff for people. Then defend it.
Are we there yet, or will you be back in a few months or weeks for more from those bastards who are obviously hoarding it in their basements?
Gary Rieschel
Founder, Qiming Venture Partners
GDP growth: 7 percent
Inflation: 4 percent
Outlook:
Focus should be less on the rate of GDP growth and more on the value of business opportunities.
US economy could move into recession again, if first quarter growth is flat.
Shanghai Composite Index could hit 3000.
Steve Brice
Chief investment strategist, Standard Chartered Bank
GDP growth: 7.7 to 7.8 percent
Inflation: 4 to 5 percent
Outlook:
Chinese stock market is undervalued and could see rapid gains.
Europe could see growth in the second half.
Chinese residential property market could see robust growth.
Goolam Ballim
Group chief economist, Standard Bank
GDP growth: 7.5 percent
Inflation: 4 percent
Outlook:
No end to financial crisis until the end of the decade when the new normal will be a shift of economic power to the East as well as Africa.
China is now front and center for Africa's economic fortunes.
Global growth needs to become stable, even if weak, before recovery can begin.
George Magnus
Senior economic adviser, UBS
GDP growth: 7.5 to 8 percent
Inflation: 4 percent
Outlook:
China still risks investment bust and lower growth in the medium term because of difficulties in weaning itself on an infrastructure-led growth model.
Western economies can expect Japan-like long-term levels of growth and near-zero interest rates set to remain.
China has endemic inflation problem with wages rising faster than money.
Junheng Li
Founder, J.L. Warren Capital
GDP growth: 6 to 7 percent
Inflation: below 2 percent
Outlook:
Further bleak news for Shanghai Composite Index, which will be flat in 2013 and could see dramatic falls in 2014.
Healthcare and education stocks could be strong sectors for investment.
China GDP could fall below 7 percent but the government should avoid fiscal stimulus.
Miranda Carr
Head of China research, NSBO
GDP growth: 7.5 to 8 percent
Inflation: 3 percent
Outlook:
China growth should improve on weak 2012 GDP figures.
Real estate already showing signs of a rebound from April 2012 low.
A lot of domestic demand will still be driven by urbanization.
Mark Williams
Chief Asia economist, Capital Economics
GDP growth: 8 percent
Inflation: 3 percent
Outlook:
China growth will revive in 2013 but won't last unless there is further fiscal stimulus.
Eurozone area will contract by 2.5 percent and show signs of cracking apart. Options for kicking the can down the road running out.
US will gradually pull itself out of the mire during 2013.
China Daily
Post a Comment