French Unemployment Rises to 9.2%; Growth Forecast Cut

BBC ^ | March 29, 2003

[nwrep]

French unemployment rises; growth forecast cut

The war with Iraq will lead to slower economic growth and more unemployment, France's statistics institute has said.

The Insee institute cut its growth forecast for the first half of 2003 but ruled out a recession provided that the war ended by May.

The French social affairs ministry said on Friday unemployment had edged up 0.1% to 9.2% in February.

There are now 2,343,800 registered unemployed people as the French economy struggles with the global economic slowdown.

Meanwhile, EU Economic and Monetary Affairs Commissioner Pedro Solbes said he still expected the European economy to recover in the second quarter, provided the war would be short.

Bleak scenario

He told a Portuguese newspaper: "We still hope for an upturn in the second quarter, if the uncertainty disappears and if investment and consumption grow in the near future."

Insee said it expected the French economy to grow by 0.3% in each of the first two quarters of this year, which is a revision of last December's prediction of 0.4% growth in the first quarter and 0.6% in the second.

The institute based its forecasts on war in Iraq not going on longer than the beginning of May.

EU Commissioner Solbes based his comments on European economic recovery on the conflict with Iraq being a short one.

But he also did not rule out a much less optimistic scenario, "where there is a relapse in confidence, the situation on the markets worsens, where activity weakens and prices remain high for a long period."

"All those things together could probably result in a recession in Europe, but only in the scenario that I consider less likely," he said.

[CROSSHIGHWAYMAN]

Maybe these people will someday put down their glasses of wine long enough to see that their scarce jobs are being taken by immigrants from the middle east.

[kellynla]

And since we cancelled our trip to Paris and have written off the champagne and Grey Goose I don't think they will be looking forward to a turnaround in the French economy anytime soon. Semper Fi

[proxy_user]

That's not it. To find out what's really going on, read this article:

http://www.city-journal.org/html/12_4_the_barbarians.html

[Drango]

I'm PRO-activly boycotting France. I filled out a comment card from my local Safeway about them buying French products and NOT supporting our troops. So far I've gotten three calls (messages)from their customer satisfaction group...

[free from tyranny]

Perhaps some local jobs are being lost to the North Africans and the Egyptians. The majority of their jobs are disappearing and reappearing in China and India.

The western standard of living is falling as a result of unrestricted trade with these two populus countries. The European socialist countries have the weakest economies and will be hit hardest the soonest. The US is not immune either.

There had better be a technology boon or someother pixie dust magic to save our bacon.

[CROSSHIGHWAYMAN]

great article! thanks

[jwalsh07]

This will be the low water mark for a while. The French have bigtime problems as well as ther Germans which makes them dangerous.

When Socialists can't pay the bills any more, they always get adventurous.

[eno_]

The Western standard of living is falling due to inner city schools that have the same standards of "education" as in Mogadishu.

The Western standard of living is falling because we have a higher tax and regulatory burden than nominally "Communist" China. Russia has a flat tax. If Communists are friendlier to capital than self-professed Capitalists... well, what do you think will happen to the standard of living?

[JeeperFreeper]

Dear Proxy: That article you posted was an eyeopener. It shows the evils of socialism and liberalism as well.

[yonif]

French are losing their jobs they had in Iraqi businesses.

[jragan2001]

Yeah, much like Americans are FINALLY realizing that their
jobs are being taken more and more by ILLEGAL ALIENS from
Mexico and other nations south of the border all for
cheaper labor.

[southernnorthcarolina]

Well, I just hate it for 'em...

Grapes rotting in the vinyards of Bordeaux...

Snails in Gascony left to do whatever it is snails do, rather than being harvested...

Unemployed pigs in Provence, no longer needed to root up fungi from underground oak roots...

Geese in Brittany no longer force-fed to produce 20-pound artery-clogging livers...

Art gallaries in Paris no longer able to sell paintings by the "masters" who painted the same bridge or the same mountain over and over and over again...

Unemployed auto workers in Normandy, no longer inflicting Renaults upon gullible consumers...

Oh, the horror, the horror. What will we do without French products?

[VRWC_minion]

Is this why there was a pause in our military action ?

[Enemy Of The State]

Couldnt happen to a better country (worse)

[Gorzaloon]

The institute based its forecasts on war in Iraq not going on longer than the beginning of May.

Had they not deliberately obstructed us, hoping to drag it into Summer, whereupon we would put off attacking their ally and client, then they would not have to worry.

Worry a lot.

I liked the Uniroyal Nailguards I had on my old car, and now I am getting tires for my other one.

Pirellis. Glad I found out about Uniroyal=Michelin in time!!!

[blam]

Boycott all French products!

[cfrels]

Just wait until they feel the effect of the drop off in tourism....

[meyer]

Bump for further read. I skimmed it and it sounds a lot like Detroit! The socialist utopia crumbles wherever it has been implemented.