After the Cahuzac scandal, the Hollande presidency is in tatters

France's Socialist president has failed to deliver - and in record time.

Barely ten months after his election, François Hollande is a lame duck President. He is even more unpopular than Nicolas Sarkozy was at the same stage of the presidency. The French people elected him in May 2012 because they had had enough with Sarkozy’s right-wing politics which deeply divided the nation. They wanted change. Hollande’s austerity policies and his alignment on Angela Merkel’s positions in Europe have dramatically failed to make a difference so far.The majority of the population even feels that there is a troubling continuity with Sarkozysm on major policy areas such as employment, pensions, benefits, wages, not to mention the neo-colonial war waged by French troops in Mali.

Now, the Hollande presidency is in tatters. A state scandal is threatening to engulf Hollande and the Socialist government. The person responsible for the crisis is Jérôme Cahuzac, who was the Budget Minister until two weeks ago. For the past few months, Cahuzac had been accused of having used a secret Swiss bank account to avoid paying taxes in France. Those allegations were made by Mediapart, an investigative website run by Edwy Plenel, a former editor-in-chief for Le Monde newspaper. The accusations were repeatedly denied by Cahuzac before the President, the Prime Minister,the members of parliament and various media. On 2 April, Cahuzac suddenly admitted to a judge that he hid €600,000 (£510,000) offshore for over twenty years. He was immediately placed under formal investigation for laundering the proceeds of tax fraud by French justice. Hollande appeared on national television the next day and said that Cahuzac’s actions were an "unforgivable moral error".

This dramatic development could not have happened at a worst time for a beleaguered President, nor could the trouble have come from one of the most sensitive departments in government. Indeed, as Budget Minister, Cahuzac was the man in charge of fighting tax evasion. He was also responsible for leading a crusade against tax heavens on behalf of the French State. He had the task of streamlining the budget and running the government’s crackdown on rich people who would be made to pay more taxes. When two weeks ago Cahuzac resigned, Hollande applauded his decision to "better defend his honour". For Hollande and Jean-Marc Ayrault – Hollande’s Prime Minister – it is a no-win situation. If they now acknowledge that they had misgivings about Cahuzac’s probity, they would be held responsible. Thus, they can only claim that they knew nothing about the scandal. In the best case scenario, the executive comes across as weak and indecisive.

Hollande, Ayrault and Socialist members of parliament have tried hard to downplay the whole Cahuzac episode. They argue that it is a personal betrayal and the story only poses a "moral issue". In truth, the Cahuzac scandal has only marginally to do with the dishonesty of a man. It is much more than the sad personification of the "bastard" as defined by Jean-Paul Sartre. No, the Cahuzac swindle also exposes political manipulations and lies at the heart of the Hollande presidency. It truly is a state scandal which creates a political crisis whose political ramifications will be multiple and hard to predict.

Who is Jérôme Cahuzac? This 60 year-old man was a cardiologist who became a plastic surgeon specialising in hair transplants. In this new profession, the disgraced minister amassed a large personal fortune. Cahuzac comes from the self-professed neoliberal/Blairite wing of the Socialist Party. In a recent television debate with Jean-Luc Mélenchon, the leader of the Left Front, he haughtily conceded that never in his thirty-year long career in the Socialist Party, he had "believed in class struggle". When Ayrault appointed him to the government, several party officials warned the Prime Minister that this was a hazardous decision. Arrogant and briskwith his colleagues, Cahuzac belongs to a breed of "Socialists" that ignores virtually everything of the travails of the electorate who brought Hollande to power last year. What is more, Cahuzac was in government the zealous promoter of the harshest austerity policies that France has ever experienced since the end of the Second World War. Here is a man who not only lectured the public about fraud evasion while being a fraudster himself, but who was also responsible for implementing and monitoring unfair and pointless economic policies – such as his target of reducing France’s public deficit to 3 per cent - which inflicted unnecessary suffering on the worst off in society.

Until the New York sex scandal which put an end to his political career, Cahuzac was a "Strausskahnian", i.e. a close and devoted political ally of Dominique Strauss-Kahn. The two "Socialists" shared the same lavish and insouciant lifestyle and the same taste for laissez-faire economics. Both men were friendly with the rich and powerful and bothentertained dubious relationships in the political world. Mediapart has revealed that Philippe Péninque was the person who discretely opened Cahuzac’s bank account in Switzerland in 1992. Péninque used to be a member of Groupe Union Défense (GUD), a violent student union on the extreme right. He is currently a close friend and confident of Marine Le Pen.

Hollande’s responsibility is here clearly engaged as it should have been clear from the start that Cahuzac’s appointment was politically hazardous. A cabinet minister recently revealed that Cahuzac was responsible for messing up the handling of the tax bill on very high earners - the "75 per cent tax" on people earning over €1 million. Warned that some provisions in the bill might be censored by the Constitutional Council, Cahuzac opted to go ahead with it. The bill indeed ended up being censored by the French Supreme Court. Only days ago, Cahuzac was still presented in Socialist circles as the paragon of "good governance" and as a ‘competent and brilliant minister’. How was it possible to appoint such a man to a Socialist cabinet in the first place?

One may put the question to Pierre Moscovici, the Minister of Finance. After Cahuzac’s exit, Moscovici is the last "Strausskahnian" left in government. One of the rare Blair admirers in France, Moscovici now stands accused by Mediapart of having used the State apparatus to try to whitewash his political friend. Weeks ago, Moscovici declared that he had inquired to the Swiss banking institutions about Cahuzac’s secret account and that he was satisfied that no such account existed.

The Cahuzac scandal is well and truly essentially a political scandal. This episode involves a caste of politicians who have completely let down the people who elected them. Some thought that they were untouchable. After ten months in office, this Socialist government has already turned its back on the needs and aspirations of the working people.

Philippe Marlière is professor of French politics at University College London. He tweets @PhMarliere

The French president François Hollande (2nd left), followed by prime minister Jean-Marc Ayrault and the former budget minister Jerome Cahuzac. (Photo: Getty.)
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Hate Brexit Britain? 7 of the best places for political progressives to emigrate to

If you don't think you're going to get your country back, time to find another. 

Never mind the European Union, the UK is so over. Scotland's drifting off one way, Northern Ireland another and middle England is busy setting the clocks back to 1973. 

If this is what you're thinking as you absentmindedly down the last of your cheap, import-free red wine, then maybe it's time to move abroad. 

There are wonderful Himalayan mountain kingdoms like Bhutan, but unfortunately foreigners have to pay $250 a day. And there are great post-colonial states like India and South Africa, but there are also some post-colonial problems as well. So bearing things like needing a job in mind, it might be better to consider these options instead: 

1. Canada

If you’re sick of Little England, why not move to Canada? It's the world's second-biggest country with half the UK's population, and immigrants are welcomed as ‘new Canadians’. Oh, and a hot, feminist Prime Minister.

Justin Trudeau's Cabinet has equal numbers of men and women, and includes a former Afghan refugee. He's also personally greeted Syrian refugees to the country. 

2. New Zealand 

With its practice of diverting asylum seekers to poor, inhospitable islands, Australia may be a Brexiteer's dream. But not far away is kindly New Zealand, with a moderate multi-party government and lots of Greens. It was also the first country to have an openly transexual mayor. 

Same-sex marriage has been legal in New Zealand since 2013, and sexual discrimination is illegal. But more importantly, you can live out your own Lord of the Rings movie again and again. As they say, one referendum to rule them all and in the darkness bind them...

3. Scandinavia

The Scandinavian countries regularly top the world’s quality of life indices. They’re also known for progressive policies, like equal parental leave for mothers and fathers. 

Norway ranks no. 2 of all the OECD countries for jobs and life satisfaction, Finland’s no.1 for education, Sweden stands out for health care and Denmark’s no. 1 for work-life balance. And the crime dramas are great.

Until 24 June, as an EU citizen, you could have moved there at the drop of a hat. Now you'll need to keep an eye on the negotiations. 

4. Scotland

Scottish voters bucked the trend and voted overwhelmingly to stay in the European Union. Not only is the First Minister of the Scottish Parliament a woman, but 35% of MSPs are women, compared to 29% of MPs.

If you're attached to this rainy isle but you don't want to give up the European dream, catch a train north. Just be prepared to stomach yet another referendum before you claw back that EU passport. 

5. Germany

The real giant of Europe, Germany is home to avant-garde artists, refugee activists and also has a lot of jobs (time to get that GCSE German textbook out again). And its leader is the most powerful woman in the world, Angela Merkel. 

Greeks may hate her, but Merkel has undoubtedly been a crusader for moderate politics in the face of populist right movements. 

6. Ireland

It's English speaking, has a history of revolutionary politics and there's always a Ryanair flight. Progressives though may want to think twice before boarding though. Despite legalising same-sex marriage, Catholic Ireland has some of the strictest abortion laws of the western world. 

A happier solution may be to find out if you have any Irish grandparents (you might be surprised) and apply for an Irish passport. At least then you have an escape route.

7. Vermont, USA

Let's be clear, anywhere that is considering a President Trump is not a progressive country. But under the Obama administration, it has made great strides in healthcare, gay marriage and more. If you felt the Bern, why not head off to Bernie Sanders' home state of Vermont?

And thanks to the US political system, you can still legally smoke cannabis (for medicinal reasons, of course) in states like Colorado.