DDMA Headline Animator

Wednesday, February 18, 2015

French govt uses power to pass economic reform without vote

February 17, 2015

PARIS (AP) — French Prime Minister Manuel Valls, invoking special powers, pushed through a pro-business economic reform bill without a vote on Tuesday, a move that drew a quick censure motion and will force the government into a showdown vote for its life.

The bill that is meant to spur growth in France's stagnant economy, in part by throwing open some shop doors on Sundays, is a centerpiece of President Francois Hollande's economic strategy. Valls' decision to use Constitutional Article 49-3 to get the measure through the powerful lower house of parliament came shortly before a scheduled vote on the bill.

The decision to take recourse to the rarely used special power was made at an emergency Cabinet meeting. The brief session called by Hollande was part of a dramatic power struggle within the governing Socialist Party, where a group of mavericks contested the bill authored by 37-year-old Economy Minister Emmanuel Macron.

The opposition conservatives' UMP party quickly filed a motion of no confidence, saying Valls' use of Article 49-3 only shows that "this government no longer has a majority." The party denounced the reform as a "compilation of varied measures which frees up neither work nor investment nor activity" and called it a "missed occasion to redress our country."

Valls is now obliged to defend his government and submit to a vote, likely as soon as Thursday evening. Losing the vote means the government falls, but that is widely considered an unlikely prospect. The mavericks within his party have needled the government majority on other issues and while they have grown in numbers they are not expected to help bring down the government.

The prime minister has shown steely determination to get the bill passed. "I will take no responsibility for the risk of rejection of a bill I consider essential to relaunch the economy," Valls said in announcing his decision to invoke special powers.

The bill is aimed at freeing up France's labor rules to invigorate hiring and investment. It contains a patchwork of measures from easing layoffs to boosting Sunday shopping — the issue at the heart of the battle.

Only a scant number of French shops, mainly in tourist areas, are open on Sundays at the moment. Under Macron's law, designated "international tourist zones" would be created with the right to open on Sundays and evenings until midnight. Stores in other areas would be allowed to be open 12 Sundays a year, rather than five currently.

The French president adopted a new economic strategy last year in hopes of kick-starting the economy, with a growth forecast of but 1 percent for 2015 and an unemployment rate of 10 percent.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.