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Made in France is particularly popular in this pre-election period. For Adrien de Tricornot co-author of "Inevitable protectionism" is both inadequate and cons-productive for the country reindustrialise. Interview. But the tertiary sector of the labor market in France is also accompanied by a sharp drop in the industrial sector. Occupations exposed to international competition are the most exposed. Metallurgy and should lose, according to forecasts of CAS, 40 000 jobs. Made in France is particularly popular in this pre-election period. Almost all candidates have made a strategic focus of their program. Why?

In contact with opinion and their voters, candidates understand the concerns that cause deindustrialization. They are therefore obliged to provide answers, more or less satisfactory elsewhere. But behind this reaction a bit demagogic, candidates are especially becoming aware that the trade deficit is causing the budget deficit, and not vice versa. Clearly, that our problems are not related to excessive public spending but the growing industrialization of France. This is reassuring since the diagnosis is correct. Unfortunately the answers thereto are not up to par.

Why? Promote French production is not a good starting point?

This is both superficial and cons-productive. Superficial, because it does not respond to the initial problem: it's not a label or an annuity tricolor French product that we will reach reindustrialise France. Cons-productive or even dangerous, because it leads us to withdraw into ourselves when we are part of a package called the European Union. Our priority must be to bring together our models rather than opposing them. Or give the advantage to the Franco-French products require to ultimately recover from the borders between us and our European neighbors. Suffice to say that we would lose 50 years of progress and of European integration.

VAT Social Nicolas Sarkozy seem to you more able to answer the question of de-industrialization of France?

A tariff intelligent European borders seems a more appropriate response, although more difficult to implement. Anyway, create a social VAT at this time of unemployment and low growth seems particularly dangerous. Taxing consumption will lead to an immediate compression of demand, which is obviously not desirable. Conversely, the success of the device in terms of labor cost is far from clear. For the measurement to be as efficient as possible, it would take a broad base and a strong increase in VAT, which is the opposite of what the government proposes. Therefore, it seems wiser to focus on other ways to offset the decline in the cost burden as the increase in CSG for example, or the tax on financial transactions.

Germany has set up successfully …

It's time to stop with the myth of the German model. German competitiveness is not due to labor costs, but its strong specialization in heavy industry. Indeed, the country has managed to turn to high-end industry and is now enjoying growth in inequality in the world, by building machines from Chinese factories. Moreover, the German population is very different from its French neighbor, giving it the moment a comparative advantage. Anyway I think the comparison is irrelevant between the two countries. More generally, moreover, the manipulation of foreign models, often in politics, most often leads to an impoverishment of the economic debate. Remember when in the year 2000, Germany put Ireland and Britain on a pedestal …

In your book "Inevitable protectionism", you feel that the only answer to our competitiveness problem is protectionism, why?

For years, employment and value added of manufacturing French, European and U.S. are in freefall. For years, the growth of the financial system helped to hide this reality. The use of public and private debt indeed allowed to sustain growth. But the crisis of 2007 brought down the masks: after the financial bubble burst, it became impossible to restore growth. In a way or we must therefore find ways of production.

See also the discussion of Expansion: Is a new protectionism?

How?

The great ideology of free trade, still largely dominant, lulled us into the illusion that global competition could be pure and perfect, and it would lead to lower prices for people, and enrichment of the most poor. In reality, this never happened, and very quickly, new forms of protectionism (unfair) appeared. This is for example the case of the Chinese currency, now largely undervalued, and against which it is impossible to compete! It is also the case for taxation which allows some countries to attract the wealth of others. Faced with this terrible situation two possibilities: either we wait idly by our bankruptcy or they were countered by strong safeguards, but transparent and fair.

What concrete steps do you propose?

We propose to set up barriers at the borders of Europe and more generally to regionalize trade in coherent sets. The idea is to increase the price of imports from countries that do not meet a number of tax rules, social environment. At the social level, for example, one can imagine a system where we would tax the product if wage growth does not follow the increase in productivity. Thus, if the difference between the salary increase of Chinese textile worker and the average gain in productivity of the company is 15%, 15% tax on the product until the gap is not reduced. To avoid paying customs duties, the company's interest to raise wages. This can be transposed at the environmental level: all products whose manufacture has not met the criteria of the Kyoto Protocol for example could be taxed. To be completely concrete, we tried to do the math, a role for monetary dumping: on his arrival in Europe, a Chinese textiles would be taxed to the tune of at least 50%.

Europe seems you ready?

It will be long and complicated but not impossible. Especially Germany defends its interests tooth and nail, but is aware that she eminently need the euro area, the main destination of its exports. Moreover, in the European treaties, customs duties are primarily decided by qualified majority, which offers greater flexibility. However we are well aware that such measures will be implemented in a snap. It is only time to think, the risk that not only the political extremes seize the issue and distract.

Might there be not to antagonize our trading partners?

Today no one can move from Europe as a trading partner, nor the U.S. nor China, which have also not the same reservations that we resort to protectionism. Moreover, it seems that for some of our partners, our lack of reaction is analyzed almost as a sign of weakness and decadence of the West. That is why they will not be surprised to witness the awakening of Europe! When Barack Obama has increased tariffs on Chinese tires, it affected relations between the two countries for a time, and then exchanges came away with renewed vigor, as tariffs for that matter! That's why it's time to stop stigmatizing a priori protectionism, which is not comparable as such to the war or border closures as would have us believe the advocates of liberalism …

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OpinionWay poll for Le Figaro and LCI, 57% of French people say they are against an increase in VAT. Other measures announced by Nicolas Sarkozy are they rather welcome. The standard VAT rate will increase on 1 October from 19.6% to 21.2% to compensate for 13 billion euros of lower employer contributions, announced Sunday, January 29 Nicolas Sarkozy a majority of French (57%) are against an increase in VAT in return for lower social security contributions, but approves other measures announced Sunday night by President Nicolas Sarkozy, according to a survey OpinionWay-Fiducial for Le Figaro and LCI released Tuesday soir.28% of respondents are "totally opposed" to "lower burdens on wages and, in turn, the increase in VAT by 1.6" and 29% are "somewhat opposed" .42% in however, support this measure (15% "quite" 27% "fairly positive"). 1% is silent pas.La proposal of the Head of State VAT increase is accompanied by a decrease in payroll taxes. The requirement for companies with more than 250 employees have at least 5% of young people in training is approved at 90%, creating a tax on financial transactions to 77%. 65% approve of "the possibility for social partners to negotiate agreements within each enterprise to define, for example working time of employees," 53% "higher than 30% of construction rights on any ground." For Moreover, Nicolas Sarkozy is preferred to Francois Hollande for "lead France" (39% against 32%, 28% said "neither"), "reduce the debt of France" (35% against 27%, "no of the two "37%)," reform France "(34% against 30%," neither "to 35%)," to get France out of the crisis "(31% against 26%," neither "42%). The socialist candidate prevails over the incumbent president when it comes to" bring the French "(38% against 18%" neither "to 43%). Study conducted on 30 and 31 January with a sample of 1097 people representative of the French population aged 18 and older, interviewed online and constituted under the quota method.

The NYSE has closed lower Tuesday due to disappointing company results and tried not bode well for the health of the U.S. economy, while the uncertainty surrounding the euro zone has amplified the trend.

The Dow Jones finished down 1.74% or 207.00 points to 11,706.62, while the S & P 500 ended on a down 2.0%, or 25.14 points, to 1229.05.

The Nasdaq composite, for his part yielded 2.26% (61.02 points) to 2,638.42.

The meeting of finance ministers from the euro area scheduled for Wednesday was canceled, but the leaders of the European Union still plan to meet the same day summit, as expected.

"Everyone thought that with the meeting and the summit, the European problem was more or less settled, but the announcement of the cancellation has created a very negative feeling about the chances of a resolution in the short term," commented Steven Neimeth of SunAmerica Asset Management.

On the corporate side, the diverse group was disappointed by 3M reported results below expectations in the third quarter and lowering its forecast throughout the year.

The title sold 6.25% to 77.04 dollars.

The UPS Logistics Group has meanwhile declined by 2.14% to 69.35 dollars after the Director General indicated that predict the U.S. economy continue to grow slowly.UPS, however, reported an increase in profits.

Netflix suffered a spectacular fall from 34.9% to 77.37 dollars after announcing a loss of subscribers higher than expected.

Icade published Monday sales up 11% in the first nine months of 2011, thanks in particular to the full-year effect of the acquisition of Compagnie la Lucette.

The real estate company, a subsidiary of Caisse des Depots, recorded sales of 1,065.8 million at September 30, also boosted by lettings made in 2010 of its commercial property division and for the development division, by the progress of projects of operations signed last year.

Also for its development division, the group notes that "in an uncertain market environment and reduction of tax incentives", bookings were down 11% in value compared to the first 9 months of 2010.

Icade, whose action on Friday completed a course of 65.00 euros, provides no indication of its prospects.

Wall Street opened little changed on Thursday, the concern surrounding the European crisis of debt weighing on a market already made nervous by the earnings season.

Fifteen minutes after opening, the Dow Jones gained 0.2% (25 points) at 11,527 points.The Standard & Poor's, largest, took 0.2% (2.5 points) to 1212 points while the Nasdaq composite fell by 0.1% (2 points) to 2601 points.

Information from the German newspaper Die Welt, the German government that does not exclude the possibility of postponing the second time the EU summit scheduled on Sunday, has cooled investor sentiment, eager for Europe to find a plan to end the crisis.

In the process, senior sources directly involved in the preparation of the summit said they were unaware of such a project report.

Reports that the European Financial Stability (EFSF) may redeem the bonds on the secondary market under certain conditions are not sufficient to fully reassure the market.

Investors also monitor closely the earnings season that stand out far subdued. Microsoft will release its results include after-hours trading.

Yahoo gained 2.3% after asking that applicants interested in a takeover bid does not communicate with each other, while the group is probably too big to swallow for a single company, with the possible exception of Microsoft, whose title was down 0.5%.

EBay is losing more than 4% after yet announced a quarterly revenue up 32% and net profit in line with expectations of financial analysts.

The weekly jobless claims fell slightly last week in the United States at 403,000 against 409,000 the previous week and 400,000 expected.

French deputies adopted Monday by 49 votes to 25 against the bill authorizing the state to provide guarantees to the restructuring of the Franco-Belgian bank Dexia to facilitate its dismantling.

The UMP, which holds an absolute majority in the Assembly, and the group of the New Centre (NC) voted this draft supplementary budget ("collective") for 2011, reviewed by expedited review in the Senate turn Wednesday night.

The leftist opposition voted against. "We vote against it because what we present is completely blurred. The minister did not believe," said Christian Eckert (PS).

The left is now a majority in the upper house, the text may be released Wednesday.It will then be made a new reading in the Assembly who constitutionally has the final say.

"The adoption of this supplementary budget is an issue of responsibility. Dexia's customers like the creditors must have confidence that states have kept their word.Our communities in turn can rely on this feature to continue to invest for the benefit of the economy, "said Baroin, the Minister of Economy.

This restructuring plan, arrested Oct. 10 by the board of directors of the group and approved by the Belgian, French and Luxembourg, Dexia provides for the dismantling.

The bank, founded in 1996 with the merger of Crédit local de France and Crédit Communal de Belgique, had already received a bailout in 2008.

The decommissioning plan provides that Dexia France, Belgium and Luxembourg will provide 90 billion euros in guarantees for its financing needs with 60.5% for Belgium, 36.5% for France and 3% Luxembourg.

The new supplementary budget offers a double guarantee.First, the funding will enable Dexia to borrow on the markets with the guarantee of France, Belgium and Luxembourg, the maximum total outstanding amount of 90 billion euros for a period of ten years maximum.

The second guarantee, up to 10 billion euros, is for a fraction of the portfolio of loans to local authorities of Dexia that the new structure controlled by the Deposit (CDSC) and the Post Bank will acquire.

The Belgian part of the rescue of Dexia was temporarily authorized Monday by the European Commission, however, that announces the opening of an investigation to ensure that the operation does not violate the rules on state aid and application Belgium to submit within six months a new restructuring plan of the bank.

The Spanish government said Thursday the postponement of the privatization of two major airports of the country, candidates clashing with the acquisition financing difficulties, a decision that deprives the state of several billion euros in revenues in the crisis debt.

The Department of Public Works said that the operation was postponed for three months, after the parliamentary elections of 20 November, which could, according to polls, give power to the Popular Party (PP) today in the opposition.

But the PP is opposed to the sale of the airport and accused the Socialist government of Jose Luis Rodriguez Zapatero to have rushed into a hasty operation by selling the assets of choice at bargain prices in a financial context lackluster.

Last month, the government had already put a stop to the proposed IPO of the National Lottery on the grounds of market conditions.

Banking sources have said that private investors were reluctant to engage in these privatizations few weeks of the election.

Seven groups of investors had expressed interest in the operation, the government hoped to five billion euros.They included, alone or combined funds, the German airport operator Fraport and Spanish groups Ferrovial and Acciona Infrastructure.

TOO EXPENSIVE, THE WRONG TIME

The government demanded too high a price for the Madrid Barajas airport and El Prat in Barcelona, ​​said sources close to the discussions.

"The schedule would not allow privatization to complete just before the elections.But there was also a big difference in price compared to what the government called for the two airports, including Barajas, "said a senior bank in Madrid.

"For example, two funds that had joined the Spanish group Ferrovial Infrastructure sought a return on investment of 12-15%, while Barajas did not offer more than 10%," he added.

An American manager explained his part that "banks may have had the last word on this issue because it is they who will finance the transaction."

Most candidates have financed the operation with 20 to 30% of equity from the balance of the loan, he added.

"Given the pressure on Spanish banks by higher funding costs and rising ratios of their loans / deposits, they increasingly tend to cut back on corporate financing right now," continued the manager .

Denmark became the first Saturday in the world to introduce a tax on fat. It is 2.15 euros per kilogram of saturated fats. Denmark became the first Saturday in October the first country to introduce a tax on fat.

Denmark became the first country to introduce a tax on fats, the first Saturday in October, after a week in which to save money consumers have supplies of butter, pizza, meat or milk. The new tax, intended as a measure to fight against the consumption of fat, provides 16 kroner (2.15 euros) per kilogram of saturated fats.It will apply to all products containing saturated fats, including pre-cooked dishes.

"I doubt this will have a positive impact on health, it's just a tax" Extra, told AFP a spokesman for the Confederation of Danish Industries (DI), Gitte Hestehave. "As far as we know, Denmark is the first country to introduce a tax on fat," she said. In the week before the entry into force of this tax, the Danes have robbed the stores.

The Danes were full of fats

"We had to stock tons of butter and margarine to be able to serve our customers," he told AFP an official with the group Arla Dairy Distribution, Soeren Joergensen. "The week was rather chaotic, with lots of empty shelves.People filled their freezers, "confirmed an official of an independent supermarket in Copenhagen, Christian Jensen." Actually, I do not think this will change anything: people who want to buy a cake will buy it. Simply by doing now they are saving, "he added.

For DI, the new tax is an "administrative nightmare". The products are imported or Danish manufacturing, it will ask for statements to producers on the amount of saturated fat in the product but also used in its preparation. Updating of computer systems has also required many hours of overtime for producers and retailers. All this has a cost that will be passed on to consumers, warned Ms. Hestehave.

Moreover, lawyers point out that the tax induces a risk to the competitiveness of Danish products.The imported products subject to tax only the fat they contain are actually cheaper than the Danish products also taxed at the producer level of fat used in making "such as for frying," said the lawyer in Jeppe Rosenmejer Jyllands-Posten.

Wall Street opened sharply higher Tuesday in the wake of European stock exchanges, investors wanting to believe the adoption of new measures to deal with the debt crisis in the eurozone.

In early trade, the Dow Jones advanced 2.08% (225.95 points) to 11,271.48 points. The Standard & Poor's, wider, taking 1.78% (20.71 points) to 1183.33 points while the Nasdaq composite clinching 1.68% (41.34 points) to 2557.74 points.

"The market is starting to finally say that European leaders emerged from their torpor," Judge Peter Cardillo, chief economist at Rockwell Global Capital.

"The values ​​of all commodities are generally on the rise.People hope that a global recession can be avoided. "

Like their European counterparts, U.S. bank stocks are up, the S & P financials up 2.6% and the KBW bank index of 2.71%. JPMorgan, the largest increase Dow gained 3.8%.

The publication of an S & P Case / Shiller house prices unchanged in July has only little impact on index contracts before the opening, and investors are now looking to the index of consumer confidence The Conference Board in September, due at 14:00 GMT.

Stock markets tumbled Thursday, weighed down by the pessimistic picture of the U.S. economy compiled by the Federal Reserve of the United States and the indicator of manufacturing activity in China, which suggests that as the economy slows in the second economy world.

European shares open cuts more than 2% in the wake of Wall Street where the S & P 500 yielded 2.94% Friday. Values ​​related to the economic cycle weigh on the trend with a decline of 4.8% for the European sector of commodities.

In Paris the CAC 40 gave up 2.7% to 9.30. The pan-European FTSEurofirst 300 index lost 2.4%, while the German Dax and London FTSE down 2.8%.

In Tokyo, the Nikkei lost 2.1%.The Shanghai Composite ended down 2.8%, the percentage loss the biggest since seven weeks.

For its part, the dollar rose to a seven-month high against a basket of currencies in favor of expectations of rising interest rates in the short term as part of "Operation Twist" announced by U.S. Federal Reserve.

To come to the aid of an activity in decline, the Fed announced Wednesday it is launching a new program of $ 400 billion to increase the share of long-term securities in its portfolio of assets 2850 billion.

The central bank has warned against downside risks "significant" burden on the U.S. economy and cited "a continued weak market conditions of work".

A Reuters poll conducted after these statements shows that the primary dealers of Treasury estimate that only 15% chance that the Fed's attempt to influence long rates gives a real boost to the U.S. economy.

RISK AVERSION

The trend is also impacted by the announcement of a further contraction in September, the third in a row, the index HSBC Purchasing Managers (PMI) of China's manufacturing sector, a statistic that suggests that China can not be be not be the engine of global growth.

"These data come from China to add to the list of negative factors that everyone has in mind: the U.S. economy depressed the yen's strength against the dollar and the euro, the debt problems in Europe, the question a defect or not Greece, "Judge Koichi Ogawa, portfolio manager at Daiwa SB Investments.

The MSCI equity markets in the Asia-Pacific unscrewed 4.5%, falling to its lowest level in 14 months, while risk aversion is felt in the market for raw materials and the currencies of emerging markets.

The Brazilian real and South African rand recorded their worst daily decline since the bursting of the financial crisis in 2008.

Brent crude gave up 1.71% by 0700 GMT, while December copper fell more than 3% to 8045 dollars tonnes, the lowest since November.

In contrast, the U.S. Treasuries are up, return the paper to 10 years are even fell to a new low of 60 around 1.82%.

The yield securities declined significantly after 30 years the ads from the Fed, to 2.94%, a decrease of 6 basis points (bps) Thursday after falling 22 basis points Wednesday.

In France, just before the market opening, the PMI "flash" in the manufacturing industry has shown that the growth of private sector activity in the Hexagon in September fell to its lowest level since the beginning of the recovery in 2009, accentuated the decline in the industry while expanding services was weakening.