17 Feb 2015
French politics weighing on European partners - ING
FXStreet (Guatemala) - Julien Manceaux, analyst at ING Bank, explained that in France, the rightwing opposition parties called today for a defiance vote in Parliament.
Key Quotes:
"It will take place on Thursday at 6:00pm. The move follows several weeks of debate in the Assembly over a reform law called “Macron Law”, named after the Economic Affair Minister who is behind it."
"The Law - an important piece of the Valls Government reform agenda - was expected to be voted by the MP’s this month. As it contains several pieces of Law that go far beyond some Socialist red lines (notably on Sunday working), it has gathered more opponents than anticipated by PM Valls, even in his own rank."
"In a decisive move to avoid a Parliamentary veto, the Prime Minister decided this afternoon to call for special powers in order to allow the Macron Law to avoid a vote in Parliament."
"Indeed, despite the fact that the deputies have already modified a number of aspects of the initial proposition (ranging from notaries’ fares to labour market flexibility), the outcome of the vote had become increasingly uncertain while this Law topped the Government’s 2015 reform agenda. Mr Valls’ decision to finally bypass the deputies has outraged a number of opposition MP’s who called for a defiance vote on Thursday."
"If we do not think that the vote has any chance of triggering the end of the Valls Government, it illustrates how anti-reform forces remain fierce in France, a bad signal for its European partners at a time when France’s reform agenda is the last thing that can save it from European sanctions under the Excessive Deficit Procedure in March."
Key Quotes:
"It will take place on Thursday at 6:00pm. The move follows several weeks of debate in the Assembly over a reform law called “Macron Law”, named after the Economic Affair Minister who is behind it."
"The Law - an important piece of the Valls Government reform agenda - was expected to be voted by the MP’s this month. As it contains several pieces of Law that go far beyond some Socialist red lines (notably on Sunday working), it has gathered more opponents than anticipated by PM Valls, even in his own rank."
"In a decisive move to avoid a Parliamentary veto, the Prime Minister decided this afternoon to call for special powers in order to allow the Macron Law to avoid a vote in Parliament."
"Indeed, despite the fact that the deputies have already modified a number of aspects of the initial proposition (ranging from notaries’ fares to labour market flexibility), the outcome of the vote had become increasingly uncertain while this Law topped the Government’s 2015 reform agenda. Mr Valls’ decision to finally bypass the deputies has outraged a number of opposition MP’s who called for a defiance vote on Thursday."
"If we do not think that the vote has any chance of triggering the end of the Valls Government, it illustrates how anti-reform forces remain fierce in France, a bad signal for its European partners at a time when France’s reform agenda is the last thing that can save it from European sanctions under the Excessive Deficit Procedure in March."