Chirac: Last Days of Grace?

Business Week ^ | 4/7/03 | John Rossant, with Carol Matlack and Christina Passariello in Paris

[Defiant]

Chirac: Last Days of Grace?

A weak economy could torpedo the President's popularity

This ought to be Jacques Chirac's finest hour. At a time when just about every other major European leader is facing unprecedented political pressure -- think of British Prime Minister Tony Blair, Spanish Prime Minister José María Aznar, and German Chancellor Gerhard Schröder -- France's 70-year-old President is riding high. Make that spectacularly high. Never in the 45-year-old history of France's Fifth Republic has a President enjoyed approval ratings like the ones Chirac can boast of today. Thumbing his nose at the U.S. and Britain on Iraq over the past two months has given him a 75% approval rating. "It would be hard to go even higher," says Pierre Giacometti, director of Paris polling firm Ipsos. "The public feels this is the first time in a long time that France is very influential on the world stage."

But with trouble brewing on two key fronts, the blissful lune de miel between Chirac and France could fall apart. Behind the domestic accolades Chirac is receiving for his international stance, the French economy is running out of steam. Unemployment is rising, bankruptcies are soaring, and government finances are in a ferocious squeeze.

Moreover, Chirac's very handling of the Iraq crisis is a high-risk policy that could easily backfire, isolating France. With new European Union candidates recoiling against the perceived high-handedness of Paris, the overall French position within Europe has been weakened. At the same time, French executives are increasingly fretful about strained relations with the U.S., France's largest export market outside Europe. "We've told the government privately just how worried we are," says the CEO of a major French corporation with extensive activities in the U.S.

The awakening could be rude. "I think reality is going to hit hard," says Pierre Lellouche, a free-market and pro-NATO gadfly in Chirac's own center-right party. "There really is a major economic crisis, and once the smoke screen of the Iraq crisis clears away, there will be a realization of the problems we face. If, on top of that, we are having a nasty economic war with the U.S., that can only complicate things further."

After outperforming most of its neighbors for the past two years, France's economy does look increasingly wobbly. Most analysts expect first-half growth of no more than 0.3%. Growth could slow even further if the Iraq war extends into May. Unemployment, already above the European average of 7.9%, is at 9.2% and rising, even though many companies are avoiding big layoffs as long as possible. Industrial order books have hit their lowest level since the aftermath of the September 11 attacks, while consumer confidence is at its lowest point since 1996. Addressing a group from tire giant Michelin on Mar. 31, Prime Minister Jean-Pierre Raffarin admitted that "there is a break in growth that is unprecedented in our recent history."

[Defiant]

France will be even more isolated when Germany gets rid of Schroeder and installs a pro-American Christian Democrat government.

[Abn1508]

And we're going to throw these chemical weapons finds in their face, don't think we won't.

[legman]

Moreover, Chirac's very handling of the Iraq crisis is a high-risk policy that could easily backfire, isolating France. With new European Union candidates recoiling against the perceived high-handedness of Paris, the overall French position within Europe has been weakened. At the same time, French executives are increasingly fretful about strained relations with the U.S., France's largest export market outside Europe. "We've told the government privately just how worried we are," says the CEO of a major French corporation with extensive activities in the U.S.

Great post. Those who over estimated Chirac and underestimated Dubya are beginning to feel real uncomfortable.

[angkor]

"The public feels this is the first time in a long time that France is very influential on the world stage."

"One more such victory and I am lost"
-- Pyrrhus, 281 B.C.

[rj45mis]

It is incumbent upon us to continue the boycott of French products. Chirac and the French people need to pay dearly for their betrayal.

[Steven W.]

Chirac and the French are now proven not only to be cowards, to be liars, to be stalwart supporters and friends of a regime which murdered their own children and hung them from lamposts, and helped supply them with weapons of mass destruction. But that's not what leaves the French in the ashheap of ridicule & scorn for being such heartless & deceitful people - it's that they're so STUPID they actually believed the line Chirac and Baghdad Bob so easily sold to them.

[Porath]

BOYCOTT FRENCH PRODUCTS!!!!
You will probably be surprised to learn the
French own everything from Wild Turkey to Car and
Driver to Motel 6 to cheesy Spencer Gifts to
disgusting Democrat schlock-show host Jerry Springer.

* Air France. Air Liquide. Airbus. Alcatel.
Allegra (allergy medication). Aqualung (including:
Spirotechnique, Technisub, U.S. Divers, and SeaQuest).
AXA Advisors.

* Bank of the West (owned by BNP Paribas).
Beneteau (boats). BF Goodrich (owned by Michelin). BIC
(razors, pens and lighters). Biotherm (cosmetics).
Bollinger (champagne).

* Car and Driver magazine. Chanel. Chivas Regal
(scotch). Christian Dior. Club Med (vacations). Crown
Royal Canadian Whiskey (Seagram).

* Dannon (yogurt and dairy foods). Dom
Perignon.Durand Crystal.

* Elle magazine. Essilor Optical Products. Evian.

* Givenchy. Glenlivet (scotch).

* Hennessy.

* Jacobs Creek (owned by Pernod Ricard since
1989). Jameson (whiskey). Jerry Springer (talk show).

* Krups (coffee and cappuccino makers).

* Lancome. Le Creuset (cookware). L’Oreal (health
and beauty products). Louis Vuitton.

* Martel Cognac. Maybelline. Michelin (tires and
auto parts). Mikasa (crystal and glass). Moet
(champagne). Motel 6. Motown Records. MP3.com.

* Peugeot (automobiles). Pinault - Printemps -
Redoute (Guicci, Yves Saint Laurent). ProScan (owned
by Thomson Electronics, France). Publicis Group
(including Saatchi & Saatchi Advertising and Leo
Burnett Worldwide).

* RCA (televisions and electronics; owned by
Thomson Electronics). Red Roof Inns (owned by Accor
group in France). Renault (automobiles). Road & Track
magazine. Roquefort cheese (all Roquefort cheese is
made in France). Rowenta (toasters, irons, coffee
makers, etc.).

* Seagram’s Gin. Sierra Software and Computer
Games. Smart & Final. Sofitel (hotels, owned by
Accor). Sparkletts (water, owned by Danone). Spencer
Gifts.

* Tefal (kitchenware). Total gas stations.
Technicolor.

* UbiSoft (computer games). Uniroyal. Universal
Studios (music, movies and amusement parks; owned by
Vivendi-Universal). USFilter.

* Veritas Group. Veuve Clicquot Champagne. Vittel.
Vivendi.

* Wild Turkey (bourbon). Woman’s Day magazine.

* Yoplait (The French company Sodiaal owns a 50
percent stake).

* Zodiac inflatable boats.

[xJones]

I was going to post that quote and go, "HUH?"

Is everything about France? Are they that egocentric when their country is rapidly becoming Islamic?

[Defiant]

And we're going to throw these chemical weapons finds in their face, don't think we won't.

You mean these?

[Capriole]

Wild Turkey (bourbon).

OH, NO!!! I AM UNDONE! Would it be okay if I just finished the decanter full of Turkey on my sideboard now, if I promise (sob!) not to buy another one? (My late mother taught me that a Southern lady has to know how to handle a gun, manage her staff, ride a horse, make a gentleman happy, talk about politics, hold a dinner party, read her Bible, work like a dog, and hold her bourbon. In my humble way I'm just tryin' to live up to your standards, Mama!)

[Defiant]

I agree. I don't think there will be a trade war per se, but I don't know anyone who has any interest in buying anything associated with France, and I bet their trade with us goes down significantly--like 30 percent at least. We should exploit the opportunity to open a free trade agreement with "new" Europe, and they will then thumb their noses at France, which they don't like much anyway. THAT will hurt France, too.

And we need to keep Russia from taking the French bait and forming a de facto alliance against US interests. Rather, we should convince the Russians to go with us on trade and political matters--it is in their long term interests after all, once they get over the pride factor.

[p. henry]

If the French economy is wobbly now, wait until the effects of dramatically lower US purchases of wine, cheese, Perrier, Michelin tires, Peugeots, and other French products and virtually non-existent tourism of economic significance hits home. It will not be pretty.

[FranceForBushInAustin]

Do not confuse the French government and the French Press with the French people. Understand that the silent majority is outraged by what was done, and are starting to get heard now that the voice of the pacifist-at-any-cost is no longer the projected opinion by the media. Now that WMD have been found, the International Law position of the French political elite crumbles. There is no more question regarding the right of the coalition to disarm Saddam, and free the Iraqis at the same time. The disarment by inspections is clearly a concept proposed by inapt morons who tried to outsmart everybody while protecting their financial interests. The outcome of this war is that dictators will not feel in safe heavens and that international laws will prevail and no longer be questioned. The threashold was definitely lower and Western democracies have finally the gusts to defend themselves using preemptive actions.

[Dergie]

The silent majority in France spoke loud and clear. They hate Americans and everything American.

Don't know what papers you've been reading, but your information is wrong.

Look closely at the article that started this string: Chirac's popularity in France has skyrocketed. That, my friend, is the silent majority.

They are neither friend nor enemy, and they aren't our enemy only because it serves OUR purposes. Any relationship with them will be at our convenience, not theirs. They have lost the right to have our respect.

They are backstabbers, and we will never forget.

Boycott all that is French.

[Cobra64]

Thanks for the list. I will keep it with me when I go shopping. I cannot stand the French mentality and their arrogance. Those assholes can't even market their crappy cars in the USA; the shoeless South Koreans can though. /sarcasm

[MCH]

Go To Hell France!

...and take ChIraq with you!

[Sofa King]

"The public feels this is the first time in a long time that France is very influential on the world stage."

And just what influence have they weilded? The only thing they've managed to do is to make sure that we went into Iraq without the UN. Since having a seat on the Security Council is France's biggest claim to power on the world stage, Jacques-ass has REDUCED France's influence.

[JusPasenThru]

You mean, "misunderestimated"?

[FranceForBushInAustin]

I am actually living in Paris right now. You are right when you mentioned the Press that was totally anti-war. What I am telling you is that there is now a wake up call ( and a hard one ) as the French economy is bitting the dust like Germany. On the radio in particular, people do talk about the weaknesses of the French position based on past ideology of grandeur. The government is going to have to give answers pretty soon and be sure that the Press will be the first to do the backstabbing.
I personally do not see much difference between the Democrats foreign policy and the French foreign policy. That is why France loved so much Clinton... All this is just about New World order and different views are colliding. (Pandora's box vs the Domino effect )

[freeper0743]

If I give up my VO, who owns Canadian Club?