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    ‘La French Tech’ Arrives Under Macron, but Proves No Panacea

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    The president has brought innovation, jobs and growth. Still, resentments fester on the eve of the presidential election.PARIS — In full Steve Jobs mode, President Emmanuel Macron of France donned a black turtleneck in January and took to Twitter to celebrate the creation in France of 25 “unicorn” start-ups — companies with a market value of over 1 billion euros, or almost $1.1 billion.He declared that France’s start-up economy was “changing the lives of French people” and “strengthening our sovereignty.” It was also helping to create jobs: Unemployment has fallen to 7.4 percent, the lowest level in a decade.The start-up boom was a milestone for a young president elected five years ago as a restless disrupter, promising to pry open the economy and make it competitive in the 21st century.To some extent, Mr. Macron has succeeded, luring billions of euros in foreign investments and creating hundreds of thousands of new jobs, many in tech start-ups, in a country whose resistance to change is stubborn. But disruption is just that, and the president has at the same time left many French feeling unsettled and unhappy, left behind or ignored.As Mr. Macron seeks re-election starting on Sunday, it is two countries that will vote — a mainly urban France that sees the need for change to meet the era’s sweeping technological and economic challenges, and a France of the “periphery,” wary of innovation, struggling to get by, alarmed by immigration and resentful of a leader seen as embodying the arrogance of the privileged.Which France shows up at voting booths in greater numbers will determine the outcome.Campaign posters on display this month in the northeastern French town of Stiring-Wendel.Andrea Mantovani for The New York TimesIn many Western societies, the simultaneous spread of technology and inequality has posed acute problems, stirring social tensions, and France has proved no exception. If the disenchanted France prevails, Marine Le Pen, the perennial candidate of the nationalist right, will most likely prevail, too.Worried that he may have lost the left by favoring start-up entrepreneurship and market reforms, Mr. Macron has in the past week been multiplying appeals to the left, resorting to phrases like “our lives are worth more than their profits” to suggest his perceived rightward lurch was not the whole story.He told France Inter radio that “fraternity” was the most important word in the French national motto, and said during a visit to Brittany that “solidarity” and “equality of opportunity” would be the central themes of an eventual second term.Learn More About France’s Presidential ElectionThe run-up to the first round of the election has been dominated by issues such as security, immigration and national identity.On the Scene: A Times reporter attended a rally held by Marine Le Pen, the far-right French presidential candidate. Here is what he saw.Challenges to Re-election: A troubled factory in President Emmanuel Macron’s hometown shows his struggle in winning the confidence of French workers.A Late Surge: After recently rising in voter surveys, Jean-Luc Mélenchon could become the first left-wing candidate since 2012 to reach the second round of the election.A Political Bellwether: Auxerre has backed the winner in the presidential race for 40 years. This time, many residents see little to vote for.The pledges looked like signs of growing anxiety about the election’s outcome. After several months in which Mr. Macron’s re-election had appeared virtually assured, the gap between him and Ms. Le Pen has closed. The leading two candidates in Sunday’s vote will go through to a runoff on April 24.The election will be largely decided by perceptions of the economy. In Mr. Macron’s favor, the country has bounced back faster than expected from coronavirus lockdowns, with economic growth reaching 7 percent after a devastating pandemic-induced recession.Marine Le Pen speaking this month in Stiring-Wendel.Andrea Mantovani for The New York TimesThe most significant cultural transformation has come in the area of tech, where Mr. Macron’s determination to create a start-up culture centered around new technology has brought changes the government considers essential to the future of France.Cédric O, the secretary of state for the digital sector, wearing jeans and a white dress shirt, no tie, admits to being obsessed. Day after long day, he plots the future of “la French tech” from his spacious office at the Finance Ministry.Five years ago, that may have seemed quixotic, but something has stirred. “It’s vital to be obsessed because the risk France and Europe are facing is to be kicked out of history,” Mr. O, 39, said, borrowing a line often used by Mr. Macron. “We have to get back into the international technological race.”Toward that end, Mr. Macron opened Station F, a mammoth incubator project in Paris representing France’s start-up ambitions, and earmarked nearly €10 billion in tax credits and other inducements to lure research activity and artificial intelligence business. A new bank was created to help finance start-ups.The president wined and dined multinational chief executives, creating an annual gathering at Versailles called “Choose France.”Since 2019, France has become the leading destination for foreign investment in Europe, and more than 70 investment projects worth €12 billion have been pledged by foreign multinationals at the Versailles gatherings, said Franck Riester, France’s foreign trade minister.In the past four years, IBM, SAP of Germany and DeepMind, the London-based machine learning company owned by Google’s parent, Alphabet, have increased investment in France and created thousands of jobs.Station F, a mammoth project in Paris that represents France’s start-up ambitions.Roberto Frankenberg for The New York TimesFacebook and Google have also bolstered their French presence and their artificial intelligence teams in Paris. Salesforce, the American cloud computing company, is moving ahead with over €2 billion in pledged investments.“Macron brought a culture shift where France was suddenly open to the world of funders,” said Thomas Clozel, a doctor by training and the founder in 2016 of Owkin, a start-up that uses Artificial Intelligence to personalize and improve medical treatment. “He made everything easy for start-up entrepreneurs and so changed the view of France as an anticapitalist society.”François Hollande, Mr. Macron’s Socialist Party predecessor, had famously declared in 2012: “My enemy is the world of finance.” As a result, Mr. Clozel said, securing funds as a French start-up was so problematic that he chose to incorporate in the United States.No longer.“Today, I am thinking of reincorporating in France,” he said. “The ease of dealing with the government, the consortium of start-ups helping one another, and the new French tech pride are compelling.”Among the start-ups that have had a significant effect on French life are Doctolib, a website that allows patients to arrange for medical appointments and tests online, and Backmarket, an online market for reconditioned tech gadgets that just became France’s most valuable start-up, at $5.7 billion.They began life before Mr. Macron took office, but have grown exponentially in the past five years.“I have made 56 investments in the last two years, and 53 of them are in France,” said Jonathan Benhamou, a French entrepreneur who founded PeopleDoc, a company that simplifies access to information for human resources departments.Now funding new ventures and focusing on a new start-up called Resilience in the field of personalized cancer care, Mr. Benhamou credits Mr. Macron with “giving investors confidence in stability and creating a virtuous cycle.”Talented engineers no longer go elsewhere because there is an “ecosystem” for them in France, Mr. O said.Yellow Vest protesters blocking a road in Caen, in France’s Normandy region, in November 2018.Charly Triballeau/Agence France-Presse — Getty ImagesMr. Macron has insisted that opening the economy is consistent with maintaining protections for French workers and that the arrival of la French tech does not mean the embrace of the no-holds-barred capitalism behind the churn of American creativity.Despite the president’s overhauls, France remains one of the most expensive countries for payroll taxes, according to the Organization for Economic Cooperation and Development, with hourly labor costs of nearly €38, close to levels seen in Sweden, Norway and other northern European countries.“We know that we have to go further,” Mr. Riester, the foreign trade minister, said in a recent interview. “We still have some brakes that could be taken off the economy, and we have to cut some red tape in the future.”Who Is Running for President of France?Card 1 of 6The campaign begins. 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      How Trump's Attack on Relief Bill Has Divided GOP

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Stimulus DealThe Latest Vaccine InformationF.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyTrump’s Attack on Coronavirus Relief Divides G.O.P. and Threatens RecoveryFrom the campaign trail in Georgia to Capitol Hill, President Trump’s demand for changes to the $900 billion pandemic relief plan upended political and economic calculations.President Trump posted a video on Tuesday night demanding significant changes to the pandemic relief bill and larger direct stimulus checks to Americans.Credit…Oliver Contreras for The New York TimesLuke Broadwater, Emily Cochrane, Astead W. Herndon and Dec. 23, 2020WASHINGTON — President Trump’s denunciation of the $900 billion coronavirus relief deal drove a wedge through the Republican Party on Wednesday, drawing harsh criticism from House Republicans and threatening the delivery of unemployment checks, a reprieve on evictions and direct payments to struggling Americans.His four-minute video on Tuesday night demanding significant changes to the bill and larger direct stimulus checks also complicated his party’s push to hold the Senate with victories in two runoff races in Georgia next month. The Republican candidates he pledged to support went from campaigning on their triumphant votes for the relief bill to facing questions on Mr. Trump’s view that the measure was a “disgrace.”Their Democratic rivals appeared to turn a liability into a political advantage 13 days before the election on Jan. 5, agreeing with the president’s demand for $2,000 direct payment checks and calling for Republicans to accede to his wish. Speaker Nancy Pelosi and top Democrats prepared to move forward on Thursday with new legislation that would provide the $2,000 checks, daring Republicans to break with the president and block passage of the bill in the House.But the effect on struggling Americans was perhaps the most profound: With no deal signed by the president, some unemployment programs are set to run out this week, and several other critical provisions are to end this month. The uncertainty that Mr. Trump injected into the process came at a perilous moment for the economy, as consumer spending and personal incomes resumed their slides.“Does the president realize that unemployment benefits expire the day after Christmas?” an exasperated Senator Mark Warner, Democrat of Virginia and one of the key negotiators of the package, wrote on Twitter.It is not clear whether Mr. Trump, who is furious at congressional Republicans who have acknowledged his defeat, would actually veto the package. But given how late it is in the 116th Congress, even refusing to sign it could ensure that the bill dies with the Congress on Jan. 3 and must be taken up all over again next year.The 5,593-page spending package would not only provide relief but also fund the government through September. With his threat, the president raised the prospects of a government shutdown beyond Monday and also jeopardized a promise of swift relief to millions of struggling Americans and businesses.Mr. Trump on Wednesday also made good on his promise to veto a major defense policy bill, in part because it directed the military to strip the names of Confederate generals from bases. That sets up a showdown for next week; when the House returns on Monday for the override vote, it could also vote on another stopgap spending bill to prevent government funding from lapsing.Before the turmoil, Treasury Secretary Steven Mnuchin had promised that $600 direct payments from the pandemic relief bill could be distributed as early as next week; that is an untenable timeline without Mr. Trump’s signature. The end to two expanded unemployment programs the day after Christmas could push nearly five million people into poverty virtually overnight, according to an estimate from researchers at Columbia University.Some state labor departments — which administer both state and federal unemployment benefits — are already preparing for the end of the programs because of the delay in reaching an agreement, meaning some jobless workers may temporarily lose their benefits all the same because many states will not be able to reverse course in time to avoid a lapse in payments.Frustration with Mr. Trump boiled over on Wednesday during a private conference call of House Republicans who had loyally stood by the president; many of them had joined a baseless lawsuit to try to overturn the results of the election. Representative Kevin McCarthy of California, the Republican leader, told members that he had spoken to the president and that he had not yet committed to a veto of the bill.But Mr. McCarthy conceded, “This bill has been tainted,” according to one person on the call.“The bill has been tainted,” Representative Kevin McCarthy of California told House Republicans on a private conference call on Wednesday.Credit…Stefani Reynolds for The New York TimesIn his videotaped statement on Tuesday, Mr. Trump accused lawmakers of putting aid for foreign governments before the needs of the American people.Some lawmakers on the call complained about the pork projects in the spending measure; others chimed in to challenge the characterization of the projects as pork, and one longtime House Republican vented generally about voter perceptions of the package after Mr. Trump’s scathing critique.“I don’t know if we recover from this,” said Representative Virginia Foxx, Republican of North Carolina, according to three officials on the call. “We will have a hell of a time getting this out of people’s head.”The Coronavirus Outbreak More

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      Congress Rushes to Pass Huge Coronavirus Relief Bill

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Stimulus DealThe Latest Vaccine InformationF.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyCongress Rushes to Pass Huge Coronavirus Relief BillThe House approved a $900 billion pandemic aid bill on Monday night, with the Senate poised to follow shortly after. The bill provides a $600 payment for most Americans.Speaker Nancy Pelosi on Monday in the Capitol. After months of gridlock and debate, the House and Senate are expected to approve the spending measure.Credit…Stefani Reynolds for The New York TimesDec. 21, 2020Updated 9:39 p.m. ETWASHINGTON — The House on Monday night approved a $900 billion stimulus package that would send billions of dollars to American households and businesses grappling with the economic and health toll of the pandemic. The Senate was expected to do the same within hours.Treasury Secretary Steven Mnuchin said hundreds of dollars in direct payments could begin reaching individual Americans as early as next week.The long-sought relief package was part of a $2.3 trillion catchall package that included $1.4 trillion to fund the government through the end of the fiscal year on Sept. 30. It included the extension of routine tax provisions, a tax deduction for corporate meals, the establishment of two Smithsonian museums, a ban on surprise medical bills and a restoration of Pell grants for incarcerated students, among hundreds of other measures.Though the $900 billion stimulus package is half the size of the $2.2 trillion stimulus law passed in March that provided the core of its legislative provisions, it remains one of the largest relief packages in modern American history. It will revive a supplemental unemployment benefit for millions of unemployed Americans at $300 a week for 11 weeks and provide for another round of $600 direct payments to adults and children.“I expect we’ll get the money out by the beginning of next week — $2,400 for a family of four — so much needed relief just in time for the holidays,” Mr. Mnuchin said on CNBC. “I think this will take us through the recovery.”President-elect Joseph R. Biden Jr., who received a coronavirus vaccine on Monday with television cameras rolling, has insisted that this bill is only the beginning, and that more relief, especially to state and local governments, will be coming after his inauguration next month.Lawmakers hustled on Monday to pass the bill, nearly 5,600 pages long, less than 24 hours after its completion and before virtually anyone had read it. At one point, aides struggled simply to put the measure online because of a corrupted computer file. The legislative text is likely to be one of the longest ever, and it became available only a few hours before the House approved it. Once the Senate passes the bill, it will go to President Trump for his signature.But with as many as 12 million Americans set to lose access to expanded and extended unemployment benefits days after Christmas, passage was not in doubt. A number of other pandemic relief provisions are set to expire at the end of the year, and lawmakers in both chambers agreed that the approval of the $900 billion relief package was shamefully overdue.Senator Mitch McConnell on Monday at the Russell Senate Office Building on Capitol Hill.Credit…Stefani Reynolds for The New York TimesOver the summer, Speaker Nancy Pelosi of California and Mr. Mnuchin inched toward a relief package of nearly $1.8 trillion. But after a significant infusion of federal relief in April, Senator Mitch McConnell, Republican of Kentucky and the majority leader, and several Senate Republicans initially balked at the prospect of another sweeping spending package. With Republicans reluctant to spend substantial taxpayer funds and mindful of remaining united before the November election, Mr. McConnell refused to indulge anything more than a narrow, $500 billion package.Ms. Pelosi and top Democrats, for their part, refused to entertain the targeted packages Republicans eventually put forward, and pushed to go as big as possible in a divided government. The election hung over all of the talks, with both sides not wanting to deliver the other party a victory that could buoy their chances.And Mr. Trump, fixating first on his campaign, then his effort to reverse the election’s results, did little to corral Congress toward an agreement.In the end, congressional leaders agreed to punt the thorniest policy issues that had long impaired a final agreement — a direct stream of funding for state and local government, a Democratic priority, and a broad liability shield that Mr. McConnell had long fought for.“A few days ago, with a new president-elect of their own party, everything changed,” Mr. McConnell said on Monday. “Democrats suddenly came around to our position that we should find consensus, make law where we agree, and get urgent help out the door.”As the negotiations dragged on, millions of Americans slipped into poverty, thousands of small businesses closed their doors and coronavirus infections and deaths rose to devastating levels across the country.But Ms. Pelosi vowed that with Mr. Biden in office, Congress would revisit the unresolved debates and push for even more relief to support the country’s economic recovery.“It’s a whole different world when you have the presidency because you do have the attention of the public,” Ms. Pelosi said in an interview. “I’m very optimistic about that because the public wants us to work together.”The Coronavirus Outbreak More