What Hollande should do now

How the new French president can oblige the Germans to play their part in Europe's growth strategy.

Francois Hollande comes to power at an interesting conjuncture, with Europe in crisis and the political mood on the move. It is a shift of mood not just amongst the electorate - most of whom have long been opposed to austerity (all we saw last Sunday was their chance to express their views in elections) - but amongst the political class and the technocratic elites. Voices arguing that Europe needs a growth strategy as well as a fiscal consolidation strategy are finally emerging from the IMF, from the Presidents of the European Council and the European Commission, as well as from a growing number of European leaders.  Angela Merkel swept everyone before her when she demanded a new European Fiscal Compact only months ago, but today is beginning to look surprisingly isolated with calls for a re-think coming not just from Greece and France, but also from Belgium, Spain and Italy.

Politically, Hollande therefore has more potential clout than might initially appear. Despite this the reality remains that, financially, virtually all the economic power in Europe lies in German hands and, hardly surprisingly, the German Chancellor has rapidly stated that as far as she is concerned, austerity rules. At the same time Hollande can hardly go off on a spending spree of his own. The markets would pulverise him. 

What then can Hollande do?  Pre-election, he was hardly a radical on curbing the calls for deficit reduction, merely saying that France should go slower and have a further year to consolidate. But there is one significant other possibility. In consultation with like-minded colleagues, he should turn the discussion on its head and say to Germany: we fully support the need for fiscal consolidation, but, as good Europeans, we all expect equality of treatment. In particular, you will understand that 2+2 must equal 4 and so if there are to be no deficits there must be no surpluses either.

More precisely, he should direct attention to the current text of the Fiscal Pact. Title III, Article 3, sub-clause 1 (a) reads as follows:

the budgetary position of the general government of the Contracting Parties shall be balanced or in surplus*

*[emphasis added]

The removal of these last three words would make a fundamental difference. Not only is it the case that, economically, the removal of deficits will in any case require the removal of surpluses - but more importantly, it would place on Germany the obligation to play its part in financing the growth strategy without which such fiscal consolidation is impossible.

To underline his point, Hollande might add some history. The error in the current European Fiscal compact is identical to that made at Bretton Woods in 1944. That discussion was about balance of payments surpluses and deficits, but apart from this shift of focus, the problem is identical. Those at Bretton Woods insisted on countries acting to correct deficits but without placing a reciprocal obligation on surplus countries. There is still the widespread view that Bretton Woods worked smoothly from the start. It did not. It was massively breached by the UK in 1947, when as the Bretton Woods arrangements required, we liberalised capital flows - but then, against the rules, had to re-impose them virtually straight away to prevent a forced devaluation. The system was only saved when in 1948 the US launched Marshall Aid, a stimulus of a kind not even contemplated by the Bretton Woods agreement.

Reminding Germany of this history would be salutary; at least some of their current prosperity stems from how their post-war recovery was financed. And Hollande’s pressure in this direction can hardly be too uncomfortable for the German Chancellor. Asking for less taxation and more spending is not the most difficult of messages to deliver to a politician – even in Germany.


Photo: Getty Images


Andrew Graham is the former Master of Balliol College, Oxford, and from 1988 to 1994 was Economic Adviser to the shadow Chancellor and Labour leader, John Smith.

Photo: Getty Images/AFP
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Why is the government charging more women for selling sex but turning a blind eye to buyers?

Since 2013, the number of women charged for selling sex gone up while the number of men charged for buying it has gone down.

It’s no surprise that prostitution policy is an area rarely visited by our legislators. It’s politically charged - a place where the need to prevent exploitation seemingly clashes head on with notions of liberal freedom; where there are few simple answers, a disputed evidence base, and no votes.

There’s also little evidence to suggest that MPs are different from the rest of the population - where one-in-ten men have purchased sex. It is little wonder therefore that our report on how the law should change, published in 2014, was the first major cross-party intervention on the subject in twenty years.

Some take the view that by removing all legal constraints, it will make the inherently exploitative trade of prostitution, safer. It’s not just me that questions this approach, though I accept that - equally - there’s no consensus that my preferred measure of criminalising the purchase of sex, while decriminalising the sale, would fundamentally change the scale of the problem.

Where all sides come together, however, is in the desire to see women diverted from the law courts. It is still possible for women (and it still is women; prostitution remains highly genderised) to go to prison for offences related to prostitution. Today, in 2015.

The total number of prosecutions for all prostitution offences in England and Wales has been decreasing since 2010, but not in a uniform fashion. This does not reflect a reduction in the size of the trade, or the violent nature of it.

There were once consistently more prosecutions for kerb crawling, profiting, and control of prostitution. But since 2013, there have been more prosecutions for soliciting or loitering than for profit from prostitution and kerb crawling each year.

In simple terms, offences committed by men with choice, freedom and money in their pocket are having a blind eye turned to them, while women are being targeted - and this trend is accelerating. In the law courts, and in prosecutions, it is the most vulnerable party in the transaction, who is taking the burden of criminality.

Take on-street sex buying as an example. In 2013-14 just 237 prosecutions were brought for kerb crawling, but there were 553 - more than twice as many - for loitering and soliciting.

There is a similar pattern in the 2014/15 figures: 227 charges for kerb crawling reached court, while 456 prosecutions were initiated against those who were selling sex. Just 83 prosecutions for control of prostitution, or ‘pimping’, were brought in that same year.

These are men and women on the same street. It takes a high level of liberal delusion to be convinced that prostitution is caused by a surge of women wishing to sell sex, rather than men who wish to buy it. And yet women who sell sex are the ones being targeted in our law courts, not the men that create the demand in the first place.

This situation even goes against the Crown Prosecution Service’s (CPS) own guidance. They say:

“Prostitution is addressed as sexual exploitation within the overall CPS Violence Against Women strategy because of its gendered nature… At the same time, those who abuse and exploit those involved in prostitution should be rigorously investigated and prosecuted, and enforcement activity focused on those who create the demand for on-street sex, such as kerb crawlers.”

Why then, is this happening? For the same reason it always does - in our criminal justice system stigmatised, poor women are valued less than moneyed, professional men.

My debate in Parliament today raises these issues directly with the government ministers responsible. But to be honest, the prosecution-bias against women in the courts isn’t the problem; merely a symptom of it. This bias will only be tackled when the law reflects the inherent harm of the trade to women, rather than sending the mixed signals of today.

That’s why I welcome the work of the End Demand Alliance, composed of over 40 organisations working to end the demand that fuels sex trafficking and prostitution, advocating the adoption of the Sex Buyer Law throughout the UK.

This would criminalise paying for sex, while decriminalising its sale and providing support and exiting services for those exploited by prostitution. Regardless of these big changes in the law, I don’t see how anyone can support the current state of affairs where there are more prosecutions brought against women than men involved in prostitution.

The authorities are targeting women because they're easier to arrest and prosecute. It goes against their own guidance, common sense and natural justice.
And it needs to stop.

Gavin Shuker is MP for Luton South and chair of the All Party Group on Prostitution and the Global Sex Trade.