In both America and France, two economic showdowns are about to happen. Admittedly they are fairly different, one a tax cut, debt raising, aid receiving debacle, and the other an attempt at reforms for a struggling economy, but still. Showdowns! (heh)
Anyway, the Americans (mainly the GOP) are trying to pass a raise to the debt ceiling, Conservatives naturally gunning for as many cuts as they can get, but the leadership knowing that they will need Democrat votes to pass it in the Senate after September 30, making a clean hike an option. Additionally they need to get Texas aid after Harvey (Mnunchin tried to link that to the Debt Ceiling, though it didn’t seem to go down well). Oh and they still need to pass a budget, defense spending, and a short term spending bill while they work on the former two. So, messy day over there.
France, meanwhile, is trying to reform its economic and business strategies fairly fundamentally. Naturally this is going to piss off every union and Melanchon, so expect protests. Anyway the five major shifts are
- a shift from sector discussions for employment to in house discussions, which is arguably better for the employee and definitely better for employers,
- a change in the power of judges to prevent layoffs
- a set scale for wrongful dismissal (which will piss of unions but the Government is offering to increase minimal damages in case of dismissal)
- a big cut to regs for companies with over 50 employees
- and changes to the Short term contracts common in France and the introduction of a new, middle term contract which concludes once a project is complete and with some protections for employees (employers have to try and find them a new role before dismissing them).
So very different from each other, but also big deals for them both. While its likely that Macrons bill will pass and could indeed have a positive impact on the economy in the long term, it needs to be fairly useful in the current time frame for people to accept it. Also negotiations with the Unions. Fun. And Americans of course have their own problems, which I will most likely poke my head into as they develop.
Never though I’d enjoy economic policy as much but, hey it’s interesting.