More stories

  • in

    Thought Suppression Flourishes in France and Washington

    In August, the Daily Devil’s Dictionary appears in a single weekly edition containing multiple items taken from a variety of contexts. 

    This week, we jump from French President Emmanuel Macron’s proposal of a new law intended to produce electoral momentum in the run-up to the presidential election to Republican Senator Josh Hawley’s campaign to avoid dishonoring the great tradition of white supremacy. We then move on to congressional Democrats’ greater sense of loyalty to the military-industrial complex than to their elected president and also the military threat that China’s peaceful overtures in Africa appear to represent for the US. Finally, we look at the Financial Times’ realistic, but unorthodox reading of the global debt crisis. 

    Macron’s Revised Motto: Liberté (diminished), Egalité (Two-tiered) and Neutralité

    It used to be that countries like Switzerland could claim the privilege of neutrality. The notion applied to political entities. President Macron of France has extended it to people in the name of combating “separatism,” the latest and deadliest sin against what he imagines to be republican integrity. Parliament is now deliberating on a bill designed literally to neuter the French by imposing neutrality as a behavioral norm. Macron sees the effort to inculcate and enforce “republican values” as the key to winning reelection in 2022.

    Unique Insights from 2,500+ Contributors in 90+ Countries

    “Introduced by hardline French Interior Minister Gérald Darmanin, the bill contains a slew of measures on the neutrality of the civil service, the fight against online hatred, and the protection of civil servants such as teachers,” France 24 informs us. The New York Times explains that this “law also extends strict religious neutrality obligations beyond civil servants to anyone who is a private contractor of a public service, like bus drivers.”

    Neutralité:

    A legal concept that provides a pretext for targeting the Muslim community in France for failing to live up to republican standards, a requirement that not only judges people on their aptitude to adhere to a modern faith known as “republican principles” (which supersedes any other creed or philosophy a person may identify with), but also proclaims that those principles are universal and should be shared by any rational person anywhere in the world

    The Context

    The law voted by parliament on July 23 seeks to eliminate “separatism” by removing a few of the traditional liberties the French formerly enjoyed. It also seeks to foment a climate of suspicion against anyone who resists signing on to a behavioral code designed to protect members of the current secular order.

    To ensure that some of Marine Le Pen’s xenophobic, anti-immigrant voters may be tempted to drift across to vote for Macron in next year’s election, the president has proposed a law clearly intended to demonstrate his personal pleasure in intimidating Muslims.

    Radical Ideology According to Senator Josh Hawley

    Republicans in the United States believe in freedom of expression so long as thought itself is controlled. Missouri Senator Josh Hawley understands that white exceptionalism is the unimpeachable foundation of the American way of life. “Over the past year, Americans have watched stunned as a radical ideology spread through our country’s elite institutions—one that teaches America is an irredeemably racist nation founded by white supremacists,” Hawley said. “We cannot afford for our children to lose faith in the noble ideals this country was founded on.”

    Radical ideology:

    The citing of any facts of history that might contradict the self-proclaimed normal and noble ideology of those who believe that the power structure they are a part of is predestined not only to rule the world, but also to restrict useful, objective knowledge of the world

    The Context

    When Hawley claims that we “have to make sure that our children understand what makes this country great, the ideals of hope and promise our Founding Fathers fought for, and the love of country that unites us all,” the key concept is “make sure.” This is the language not of education but of indoctrination, a characteristic traditionally associated with totalitarian regimes that mobilize whatever resources are required to “make sure” people toe the line.

    Embed from Getty Images

    The idea of “making sure” that children “understand” should be seen as an aporia, a simple contradiction, since true understanding means appreciating what one cannot be sure of — in other words, of putting things in perspective. Hawley clearly wants to remove what he calls the “ideals” from their context. This is more about undermining than understanding.

    There are similarities between Macron’s and Hawley’s approach to normalizing understanding and testing for loyalty.

    The Democrats’ Competing Priorities 

    US President Joe Biden has claimed that transformative FDR-style reforms are his priority and opposed Donald Trump’s race to further bloat the defense budget. Biden’s party in Congress is implementing its own priorities, similar to Trump’s.

    “One has to wonder what is even the point of a Senate Democratic majority if they’re going to not only continue Trump policies but work with Senate Republicans to undermine [Biden’s] priorities. Utterly pathetic,” tweeted Stephen Miles, executive director of Win Without War.

    Priority:

    Something political leaders want the public to believe is the first thing they wish to accomplish, even when they have no intention of implementing the stated policy and also expect it will not be implemented

    The Context

    During last year’s presidential campaign, Defense News reported that Biden said that “if elected president, he doesn’t foresee major reductions in the U.S. defense budget as the military refocuses its attention to potential threats from ‘near-peer’ powers such as China and Russia.” The website nevertheless suspected that “internal pressure from the progressive wing of the Democratic Party, combined with pandemic-related economic pressures, may ultimately add up to budget cuts at a Biden Pentagon.”

    In a comic historical twist, Biden did not propose a reduction in the defense budget, but instead a modest increase despite drawing down the US commitment in the Middle East. The Senate Armed Services Committee, with a majority of Democrats, applied its pressure not to reduce the budget, but to spend even more than Biden demanded. The only “internal pressure” came from one isolated progressive, outvoted by 25 Democrats and Republicans.

    The moral of the story is clear. The president cannot run the country because even the policies he prefers (sincerely or insincerely) will be overturned by the all-powerful military-industrial complex that controls Congress. Defense is no longer about defending the nation, which is already extremely well defended. It’s about supporting the defense industries that are at the core of the economy and the focus of politicians’ attention. Spending freely on defense is the norm even in a nation that hates any spending other than consumer spending. The taxpayers will never complain, because they have been taught that producing arsenals that will never be needed is consistent with the belief in the “ideals of hope and promise our Founding Fathers fought for,” to quote Hawley again.

    Embed from Getty Images

    As the wealth gap continues to grow and the effects of both the COVID-19 pandemic and a growing climate crisis have spread more misery across the nation, the Republicans and Democrats on the Armed Services Committee appear to blissfully ignore the observation of a former Republican president, Dwight Eisenhower: “Every gun that is made, every warship launched, every rocket fired, signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed.”

    The US Counters a Global Overture Threat

    It goes without saying that, given the multiplicity of threats to “national security,” the US is supposed to be everywhere in the world as a military presence. For two decades, terrorism was the main pretext, but its attraction has faded, allowing other missions to emerge, especially in Africa.

    “Now, in addition to fighting violent extremist groups, they have to counter Chinese and Russian overtures in a region where great powers are increasingly competing for access, influence, and resources,” writes Stavros Atlamazoglou in Business Insider

    Overture:

    Any initiative taken by a rival power in territories currently dominated by Western colonial and neocolonial powers, especially in regions where US troops are already present as a reminder that these are the West’s private hunting grounds

    The Context

    America’s hard power, its famed military might, appears to have a new challenge. This time it isn’t a foreign army, insurgents or terrorist cells. It is, as Atlamazoglou explains, something far more frightening: “Chinese aid, in the form of loans or infrastructure development,” part of “Beijing’s quest for natural resources and global legitimacy.” How dare the most populous nation on earth seek “natural resources and global legitimacy?” No one has called them off the bench to play the same game Western powers have excelled at for the past 500 years.

    Then there is the Russian variant, which is more respectful of the well-established American model. “Russia sells arms and provides political advisors in addition to hunting for lucrative contracts for natural resources and other geopolitical benefits,” Atlamazoglou writes. The two former rivals have remained faithful to the methods developed in that golden age politicians remember as the Cold War.

    Embed from Getty Images

    Atlamazoglou relies heavily on the testimony of John Black, a retired Special Forces warrant officer, who observes that American ambassadors need “to look at the country as a whole and take more risks, use [the US] military arm to effect real change within a country.” The stirring examples of Vietnam, Afghanistan, Iraq and Libya demonstrate how “real change” can take place when you accept to “take more risks.”

    Black understands the risk, apparently viscerally: “China or Russia might not hesitate to work with a dictator with an abdominal [sic] human-rights record to further their geopolitical goals.” Could he have possibly meant “abominable?” Or does this describe a brutal regime that weaponizes diarrhea? Citing the US commitment to the rule of law, Black implies that the US would never cavort with a dictator possessed of an abominable human-rights record.

    How did the usually serious Business Insider allow such an “abdominal” article to appear?  

    The Great Reset: The Effect of Coordination or Chaos?

    The magnates of Davos recently agreed to mobilize their forces to implement what they call the “Great Reset,” ushering in a new golden age of socially responsible capitalism. All it requires is some concerted action under their leadership.  

    Gillian Tett, writing for the Financial Times, seems to envision a different scenario: “The total global debt is now more than three times the size of the global economy, since debt — and money — has expanded inexorably since 1971. It seems most unlikely this can ever be repaid just by growth; sooner or later — and it may be much later — this will probably cause a direct or indirect restructuring or a social or financial implosion.”

    Restructuring:

    The process by which the laws of inertia teach human beings with political and economic power, who believe they possess the intelligence capable of problem-solving, that such a belief can only be an illusion

    The Context

    Humanity finds itself struggling with a straightforward situation: multiple crises related to health, climate and an economy functioning on increasingly absurd principles. Theoretically, they can all be addressed through a harmonious global focus on rational resource management followed by intelligent decision-making. But history demonstrates on a daily basis that society has delegated decision-making to: first, individuals within nations (consumers and voters); second, nations (each competing one another); and third, those who govern the nations (theoretically, politicians whose sole aim is to hold onto power once they have acquired it and who are beholden to anyone who assists them in achieving that goal).

    Unique Insights from 2,500+ Contributors in 90+ Countries

    In other words, the more universal the problem, the less likely it will be that it may be solved. Local and national crises continue to exist, but they have now become dominated by universal crises. The consumer economy and the quasi-democratic nation-states are structured, in terms of decision-making, in a way that makes any voluntary effort at restructuring impossible.

    Not only do our economies and political systems need restructuring. Our thinking about who we are and how we function as a society needs some serious revision.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

  • in

    Macron and Le Pen Parties Both Battered in French Regional Elections

    The returns suggest the presidential election next year may be more wide open than it seemed.PARIS — It had seemed inevitable: another face-off in next year’s French presidential election between President Emmanuel Macron and Marine Le Pen, the leader of the rightist, anti-immigrant National Rally Party.But after nationwide regional elections on Sunday, a rerun of the second round of the 2017 election appeared far less certain as both Mr. Macron’s centrist party, La République en Marche, and Ms. Le Pen’s party failed to win a single one of France’s 13 mainland regions.The defeat was particularly crushing for Ms. Le Pen. She had portrayed the regional elections as a bellwether of her rise to power.In the southern region of Provence-Alpes-Côte d’Azur, the one region where the National Rally led in the first round of voting a week ago, a center-right candidate, Renaud Muselier, defeated the National Rally candidate by a comfortable margin, taking about 57 percent of the vote, according to preliminary results.The National Rally has never governed a French region, and on Sunday, Ms. Le Pen accused every other party of forming “unnatural alliances” and “doing everything to prevent us from showing the French people our capacity to run a regional executive.”Marine Le Pen casting her vote.Michel Spingler/Associated PressStanislas Guerini, the director general of Mr. Macron’s party, said the results were “a disappointment for the presidential majority.”They were also no surprise.Since cobbling together his party as the vehicle for his ascent in 2017, Mr. Macron has shown little interest in its fortunes, relying instead on his personal authority and the aura of the presidency. The party, often known simply as En Marche, has never managed to establish itself on the regional or local level, despite controlling Parliament.Turnout for the election was very low. Only about 33 percent of French people voted, compared with 55.6 percent as recently as 2015, a clear sign of disgruntlement with politics as usual and weariness after the country’s long battle with the coronavirus pandemic.This low participation, and the fact the presidential election is still 10 months away, makes extrapolating from the regional results hazardous. Still, it marked a shift. A headline in the left-wing Libération newspaper above an image of Mr. Macron and Ms. Le Pen said: “2022: What if it wasn’t them?”President Emmanuel Macron and his wife, Brigitte, voting on Sunday.Pool photo by Ludovic MarinIf it is not them, it could be Xavier Bertrand, a center-right presidential candidate who emerged as the chief winner today.A no-nonsense former insurance agent in the northern town of Saint-Quentin, Mr. Bertrand, who has already announced he will run for president next year, won the Hauts-de-France region handily, with about 53 percent of the vote.His victory came despite strenuous efforts by Mr. Macron and Ms. Le Pen to make an impression in the region, which is Mr. Bertrand’s stronghold.“This result gives me the force to go out and meet all French people,” Mr. Bertrand said. “There is one necessary condition for the recovery of our country: the re-establishment of order and respect.”Mr. Bertrand, who served as health and then labor minister in the government of Nicolas Sarkozy, did not go to one of France’s elite schools and likes to portray himself as a man of the people sensitive to the concerns of the French working class. He is widely seen as an effective politician of consuming ambition. Another former minister in the Sarkozy government, Rachida Dati, once said of Mr. Bertrand: “He is the one with the most hunger.”Xavier Bertrand could capitalize on weak showings by both Mr. Macron and Ms. Le Pen. Pascal Rossignol/ReutersAlthough he left the main center-right party, Les Républicains, a few years ago, Mr. Bertrand remains part of their conservative family and has a visceral hatred for Ms. Le Pen’s National Rally, which he insists on calling by its former name, the National Front.In a sense the election marked the revival of traditional parties: Les Républicains on the right and the Socialists on the left. Left-wing coalitions, usually including the Socialists, hung onto power in five regions they already governed.Security has emerged as a primary concern of French people ahead of next year’s election, after a series of Islamist terrorist attacks over the past nine months. This has posed difficulties for a fragmented French left, which has appeared to have few answers to security concerns and no presidential candidate it can unite around. But the regional elections suggested it is far too early to dismiss the left entirely.For Mr. Macron, who has embarked on a nationwide tour to reconnect with the French people after the worst of the pandemic, the results suggest that his recent focus on winning right-wing votes that might have gone to Ms. Le Pen may need to be reconsidered.The presidential election is more wide open than it looked. The French people are more disgruntled than they appeared. More of the same — and a 2022 contest between Mr. Macron and Ms. Le Pen would be just that — may not be what they are looking for after all.Aurelien Breeden and Daphné Anglès contributed reporting. More

  • in

    France’s Electoral Abyss

    Across the globe, democracy appears to be in a curious state. One of the main indicators of the health or pathology of democracy is the turnout in elections. Some might claim that the high turnout for the Biden-Trump face-off last year was a sign of health for US democracy.

    But the aftermath — marked by the “stop the steal” movement, a riotous occupation of the Capitol building and a continued spirit of revolt by a significant proportion of the citizenry as well as some prominent politicians — reveals that the spectacular numbers achieved by both candidates in the presidential election were a sign of high fever in the body politic rather than healthy democratic engagement. Many commentators noticed that voting against a particular candidate — Hillary Clinton in 2016, Donald Trump in 2020 — rather than voting for a preferred candidate may have been the determining factor in those two elections.

    The Sad Reality of US Dealmaking

    READ MORE

    Iran’s presidential election on June 18 was notable for its low turnout. But that is what everyone expected. Iran’s centrally controlled electoral system, emanating from a strictly hierarchical governmental structure in which the power of the president is extremely restricted, produces elections that are more accurately referred to as “selections.”

    Though the two-party system in the US, sometimes referred to as a “duopoly,” leaves itself open to a similar critique, Western democracies still hold onto the idea that elections are expressions of vox populi, reflecting the will of the people. The general trend noted in recent years and in many democratic nations toward levels of abstention that often dip below 50% indicates that belief in democracy as a viable representative form of government may be far less solid than politicians and educators like to affirm.

    France set a record on June 20 for its combined departmental and regional elections, two distinct opportunities to vote on the same day in the same place. With nearly 33.3% showing up to vote, two-thirds of the electorate simply didn’t bother. The only worse showing was in a referendum in 2000, where only 30% of the electorate bothered to vote on shortening the length of a presidential term. On Sunday, the abstention figure was dramatic enough, in any case, for President Emmanuel Macron’s press secretary to term it “abyssale” (abysmal).

    Today’s Daily Devil’s Dictionary definition:

    Abyssale:

    A French adjective, usually translated in English as “abysmal,” but with a more literal meaning that serves to compare what is being described to a literal abyss, something most French people also consider to be an appropriate characterization of the level of competence and efficacy of the current French government and more generally of the political class

    Contextual Note

    Macron’s government has every reason to deem the result of this first round abysmal. Occurring less than a year before the 2022 presidential election in which Macron hopes to break the recent trend of one-term presidents (Nicolas Sarkozy and Francois Hollande), the media and the pollsters regarded these local elections primarily as an indicator of what to expect in next May’s contest. The majority party — itself a “bricolage,” an assemblage cobbled together after Macron’s freak parting of the Red Sea in 2017 — performed particularly badly, not even attaining the 10% required to remain in the running for the second round in five of the 13 regions. 

    Embed from Getty Images

    For most of his term, Macron has had low approval ratings. He has never earned the admiration of the masses that presidents of the Fifth Republic once managed to achieve, though there have been moments when the French were willing to respect his apparent competence. This was especially true after his initial response to the COVID-19 pandemic. But there are other moments, far more frequent, in which his popularity has not only faded, but Macron himself has become an object of public scorn. The yellow vest movement that raged in 2018 and 2019 is the closest thing in modern times to the kind of popular revolt immortalized during the French Revolution that more than two centuries ago, at least provisionally, abolished the monarchy.

    The commentators were even more surprised by the unexpectedly low score of Marine Le Pen’s right-wing populist party, the National Rally, formerly the National Front. The media have been building up the idea that the second round of next year’s presidential election will inevitably be a remake of 2017, with a rising Le Pen challenging a fading Macron, a recipe for anguished suspense among those less tempted by fascism. Over the next week, and immediately following the second-round results, the pundits will begin drawing conclusions about what this tells us about who will actually be present in the second round next year and how they may fare. 

    The same pundits may even decide that it means nothing at all, given the rate of abstention. Prognostication has suddenly become a more difficult exercise. The manifest indifference of the electorate to everything that politicians believe is important does, however, tell us something about the state of democracy in France in what may be the waning years of the Fifth Republic. L’Obs, a left-center weekly, cites what it calls “fatigue démocratique,” a weariness with the very rituals of democracy.

    Historical Note

    The one dramatic indicator early commentators have highlighted is the apparent victory of the traditional right that had formerly been humiliated, finding itself in a no-man’s-land between Emmanuel Macron’s increasingly right-wing neoliberal center and Marine Le Pen’s xenophobic right-wing nationalism. Some see it as a sign of rejuvenation for the Gaullist tradition. The leader of Les Républicains, Xavier Bertrand, has been trying to resist Macron’s sedulous attempt to laminate the traditional right by adopting not only its policy themes, but also the demagogic Islamophobia of Le Pen’s party.

    President Macron, the self-declared centrist, was counting on using his status as incumbent to position himself in a way that would make him attractive to a full range of voters on the right, while assuming that in his contest with Le Pen in the second round, he would also pick up most of the voters on the left who would be afraid to abstain. This could be compared on some points with Joe Biden’s successful strategy in the 2020 US presidential election.

    Les Républicains appear as the real winners for the moment, if only because they have thrown a wrench into Macron’s 2022 strategy. There now may be a stronger likelihood that Bertrand will reach the second round opposite Macron, or possibly even opposite Le Pen. This is a cause of deep embarrassment, if not consternation. The combination of Le Pen’s low score and the Républicains’ success means that the traditional right — whose continuity dates back to Jacques Chirac and, ultimately, Charles De Gaulle, the founder of the Fifth Republic — may have recovered its mojo that so suddenly faded in 2017 following the scandals of its leading candidate, Francois Fillon, and its most recent president, Nicolas Sarkozy. The latter was recently convicted for electoral fraud and has been sentenced to six months in prison.

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    The media hasn’t begun asking the real historical question that underlies this curious drama. The parties are one thing, but what about the French people? What do they think, and what do they want at this historical “inflection point,” to quote Biden? The yellow vest spirit is still floating in the air, maybe even permeating the atmosphere.

    The only candidate to have dared to talk about the eventuality of a Sixth Republic is Jean-Luc Melenchon, the left-wing populist candidate who fared honorably in the first round of the 2017 election at a moment when the once conquering Socialist Party imploded. The French media refuse to take Melenchon seriously, except as a foil to the legitimate pretenders. He has been cast in the role of the French Jeremy Corbyn or Bernie Sanders, with a stronger intelligence, a more marked strain of rebelliousness against the establishment, but less charisma. Though he could never win a presidential election, he is still the strongest political personality on the left.

    With other crises brewing — a pandemic still dragging on, hints of a possible new global financial crisis, a deepening climate crisis, exacerbated European instability, complemented by shaky leadership in the US — the French may simply be wondering how voting for anyone promises to accomplish anything worthwhile.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

  • in

    A global agreement on taxing corporations is in sight – let’s make sure it happens

    For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
    Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

  • in

    US sets – and quickly suspends – tariffs on UK and others over digital taxes

    The Biden administration announced 25% tariffs on over $2bn worth of imports from the UK and five other countries on Wednesday over their taxes on US technology companies, but immediately suspended the duties to allow time for negotiations to continue.The US trade representative, Katherine Tai, said the threatened tariffs on goods from Britain, Italy, Spain, Turkey, India and Austria had been agreed after an investigation concluded that their digital taxes discriminated against US companies.The move underscores the US threat of retaliation, first made under the Trump administration, over digital-services taxes on US-based companies including Alphabet, Apple and Facebook, that has sparked an international row over which countries should have taxing rights over some of the world’s largest companies.The US trade representative’s (USTR) office published lists of imports that would face tariffs if international tax negotiations fail to reach a solution. Goods from Britain worth $887m, including clothing, overcoats, footwear and cosmetics, would face a 25% charge as would about $386m worth of goods from Italy, including clothing, handbags and optical lenses. USTR said it would impose tariffs on goods worth $323m from Spain, $310m from Turkey, $118m from India and $65m from Austria.The potential tariffs, based on 2019 import data, aim to equal the amount of digital taxes that would be collected from US firms, a USTR official said. The news came as finance leaders from G7 countries prepare to meet in London on Friday and Saturday to discuss the state of tax negotiations, including taxation of large technology companies and a US proposal for a global minimum corporate tax. US tariffs threatened against France over its digital tax were suspended in January to allow time for negotiations.Tai said she was focused on “finding a multilateral solution” to digital taxes and other international tax issues.“Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future,” Tai said.Tai faced a Wednesday deadline to announce the tariff action, or the statutory authority of the trade investigations would have lapsed.A British government spokesperson said the UK tax was aimed at ensuring tech firms pay their fair share of tax and was temporary. “Our digital services tax is reasonable, proportionate and non-discriminatory,” the spokesperson said. “It’s also temporary and we’re working positively with international partners to find a global solution to this problem.”Reuters contributed to this article More

  • in

    In a Charged Environment, France Tackles Its Model of Secularism

    In an effort to fend off a challenge from the right, President Emmanuel Macron tries to frame a debate on two issues important to conservatives: the country’s “laïcité” model of secularism, and crime.PARIS — The French government on Tuesday initiated a wide-ranging public debate on France’s model of secularism, seeking to gain the upper hand on a contentious topic that has roiled the nation in recent months and is likely to be a battleground in a presidential election next year.Marlène Schiappa, the minister of citizenship, assembled a small group of intellectuals at a gathering in Paris, kicking off what is expected to be a monthslong series of discussions that she described as the “Estates-General on laïcité’’ — referring to the historic assemblies held in France to debate the fundamentals of French society.Known as laïcité, the French secularism separating church and state has served as the bedrock of the country’s political system for more than a century.“In every country, there are words that are important, that can’t be overlooked,’’ Ms. Schiappa said, describing laïcité as an idea in which “French destiny is found.’’The debate, which Ms. Schiappa announced to a French newspaper over the weekend, caught many by surprise because of its timing and its intentions. It is starting just as lawmakers are wrapping up work on a bill that is intended to reinforce the country’s principles of secularism and to combat Islamism.Led by Ms. Schiappa — a high-profile minister who has espoused a strict view on secularism — the debate comes as President Emmanuel Macron tries to fend off an increasing threat from the right and far right ahead of next year’s presidential election.As Mr. Macron tries to burnish his credentials as a defender of a strict vision of laïcité, he has also moved to seize another issue important to right-wing voters: crime.Following months of attention on the government’s stumbling coronavirus vaccination campaign, Mr. Macron pledged on Monday to be tough on crime, to crack down on recreational drugs and to recruit 10,000 additional police officers by the end of his current five-year term. The promises were made in a long, tough-talking interview he gave to a conservative newspaper, Le Figaro, that another publication described as reminiscent of Rudolph Giuliani, the combative former mayor of New York.On Monday, Mr. Macron visited drug-dealing spots in the southern city of Montpellier, talking to police officers and riding along inside a police car. Even as Ms. Schiappa inaugurated the debate on secularism, Mr. Macron’s prime minister and justice minister visited a prison under construction in eastern France to announce details of the government’s expansion of the prison system.French people across the political spectrum adhere to the concepts of laïcité, which was enshrined in law in 1905. But there have been profound disagreements on how to apply the law, especially since the emergence in recent decades of Islam as France’s second-biggest religion after Roman Catholicism.While Mr. Macron expressed a liberal view toward secularism at the beginning of his term, he has gradually moved closer to supporters of a strict vision of laïcité.A mosque in Ivry-sur-Seine, near Paris,  in October. Islam has become France’s second-biggest religion.Dmitry Kostyukov for The New York TimesThe government recently announced the dissolution of the Laïcité Observatory, a government watchdog that supporters of a strict laïcité long criticized as being soft. The government’s bill against Islamism also intends to enforce the country’s principles of secularism by gaining greater control over Muslim and other religious organizations, and by restricting home and private schooling.Appearing inside a church that had been converted into a government building, Ms. Schiappa spoke about the need for a “calm’’ discussion on laïcité. But the heated nature of the debate could be seen as some of the six invited intellectuals — four in favor of a strict laïcité and two against — took barely concealed swipes at one another.Conservative intellectuals said that laïcité was a universalist principle and a useful tool to fight against Islamism and an identity-driven fragmentation of society.Raphaël Enthoven, a philosopher, criticized those who, in the name of tolerance toward religions, favor a liberal version of laïcité, saying it plays into the hands of Islamists. “Laïcité is the object of prosecution and despicable propaganda which consists in presenting it almost as racism,” Mr. Enthoven said.Philippe Gaudin, also a philosopher, said that a discussion on laïcité should take into account a changing world in which more people, including the young, hold religious beliefs. “If we don’t want to understand the world in which we find ourselves, we won’t be able to explain our political choices, especially on laïcité,’’ he said.Ms. Schiappa said that through July, groups throughout the country would work on the link between laïcité and issues such as freedom of speech and women’s rights. Some 50,000 young people will be asked how laïcité affects their daily lives on an online platform launched Tuesday.Even before Tuesday’s gathering, some experts and organizations were dismissing the debate as a publicity stunt.Marlène Schiappa, the minister of citizenship, in Paris on Tuesday. Ms. Schiappa described laïcité as an idea in which “French destiny is found.’’Pool photo by Bertrand GuayPatrick Weil, a historian and expert on laïcité who teaches at Pantheon-Sorbonne University in Paris and at Yale, said that, in the past, big public debates called “Estates-General’’ preceded the work of lawmakers so as to inform the discussion.“Estates-General have a long history in France — one preceded the Revolution,’’ Mr. Weil said in an interview. “They have a lot of power. But here, it’s the opposite. It’s very strange.’’Others were even more critical, accusing Mr. Macron’s government of political theater in an effort to woo the right.Responding to Ms. Schiappa’s invitation to participate in the debate, Frédéric Sève, the national secretary of one of France’s biggest unions, the French Democratic Confederation of Labor, said it was a bad idea to initiate these discussions while the separatism bill had yet to become law.“We must stop making laïcité a permanent object of media agitation,’’ he said in a tweet.Mr. Macron’s two-pronged efforts on laïcité and crime this week come as polls show him neck-and-neck with Marine Le Pen, the leader of the far-right National Rally, in next year’s presidential election. With voters moving to the right and France’s left-leaning parties in shambles, Mr. Macron’s electoral strategy rests on winning over right-leaning voters who might be tempted to migrate to the extreme right.Polls show that while support for Macron has remained steady overall, he has lost support among right-wing voters over the past four months. While 48 percent of conservative voters and 20 percent of far-right supporters said they were satisfied with him in December, according to an IFOP study, that proportion fell to 30 percent and 13 percent in April, according to the same polling firm.Mr. Macron has also been under pressure from the right-controlled Senate, which last week passed a toughened version of his bill against Islamism, adding a series of amendments that critics said risked discriminating against Muslims.Many of the new measures stem from debates over the wearing of the Muslim veil. They include a ban on ostentatious religious symbols or clothing for minors in the public space and in sport tournaments, as well as for parents accompanying children on school outings. They also enable local authorities to ban the full-body swimsuit that some Muslim women wear at swimming pools and empower mayors to ban foreign flags in and around city hall buildings during wedding celebrations.The bill, which was approved earlier by the National Assembly, will now be examined by a cross-party parliamentary commission. If the commission fails to come to an agreement, the National Assembly, which is controlled by Mr. Macron’s party, will have the final say. The Constitutional Council could also revoke some of the new measures. More

  • in

    Your Thursday Briefing

    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Latest Vaccine InformationU.S. Deaths Surpass 300,000F.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyYour Thursday BriefingCronyism and waste in Britain’s pandemic spending.Dec. 17, 2020Updated 1:08 a.m. ET(Want to get this briefing by email? Here’s the sign-up.)Good morning.We’re covering a new analysis of Britain’s slipshod pandemic spending, a move to the right for Emmanuel Macron and an upside to the climate crisis for Russia.[embedded content]Medical staff wearing personal protective equipment, or P.P.E., at a hospital in Cambridge, England, in May. Officials shelled out billions in contracts for Covid-19 tests, vaccines and P.P.E.Credit…Pool photo by Neil HallCronyism and waste in Britain’s pandemic spendingAs Britain scrambled for protective gear and other equipment, select companies — many of which had close connections to the governing Conservative Party or no previous experience — reaped billions, according to a New York Times analysis of more than 2,500 contracts.In some cases, more qualified companies lost out to those with better political connections, which were granted access to a secretive V.I.P. lane that made them about 10 times more likely to be approved for a contract.Conclusions: While there is no evidence of illegal conduct, there is ample evidence of cronyism, waste and poor due diligence, with officials ignoring or missing red flags, including histories of fraud, human rights abuses, tax evasion and other serious controversies.Christmas restrictions: Prime Minister Boris Johnson has stuck by a pledge to lift limits on gatherings from Dec. 23 to 27 despite growing calls to abandon the plan as coronavirus cases surge.Here are the latest updates and maps of the pandemic.In other developments:The U.S. is negotiating a deal with Pfizer to produce tens of millions of additional doses of its coronavirus vaccine. Vaccinations began in the U.S. on Monday.The number of severe Covid-19 cases in the Gaza Strip sharply increased, raising concerns that hospitals could soon be overwhelmed.In the first week of Britain’s vaccination program, more than 137,000 people have received shots.An international team of 10 scientists working with the World Health Organization will travel next year to China to investigate the origins of the coronavirus.President Emmanuel Macron of France has moved to the right, alienating some former supporters and current members of his own party.Credit…Thomas Coex/Agence France-Presse — Getty ImagesMacron’s pre-election slide to the rightWith an eye on France’s next presidential election in 2022, President Emmanuel Macron has tacked to the right, alienating former liberal supporters and current members of his own party.After recent terrorist attacks, Mr. Macron pushed forward bills on security and Islamist extremism that raised alarms among some French, the United Nations and human rights groups, but won favor among right-leaning voters. Marine Le Pen, the leader of the far-right National Rally, is expected to be his main challenger.Analysis: Despite his center-left origins, Mr. Macron has always been known as a shape-shifter. His slide to the right is regarded by some as a clean break from the first three years of his presidency.Related: A French court found 14 people guilty of aiding the 2015 attack on the magazine Charlie Hebdo, supplying the attackers with cash, weapons and vehicles.Gender equality: The mayor of Paris was fined nearly $110,000 for hiring too many women, under a 2012 law intended to address gender imbalance at senior levels of the country’s Civil Service.A landmark ruling on air pollutionA 9-year-old girl who died of an asthma attack in 2013 became the first person in Britain to officially have air pollution listed as a cause of death, after she was exposed to levels of nitrogen dioxide and particulate matter beyond World Health Organization guidelines.The death of the girl, Ella Adoo-Kissi-Debrah, who was Black, shed a harsh light on how pollution disproportionately affects minorities and deprived families in Britain.Legal experts said it could open a new door to lawsuits by pollution victims or their families. The girl lived near a major road in southeast London. Her mother said that if she had been told air pollution was contributing to her daughter’s ill health, she would have moved.The Coronavirus Outbreak More