French foreign policy: so far, François, So good

On foreign policy, the French president is proving skilful and radical.

Given France’s importance as a world power, a member of the UN Security Council, one of the world’s largest economies, a nuclear power, and a driver of the EU project, French foreign policy under President Hollande is of fundamental importance to all of us.

Ironically no one mentioned foreign policy in six months of presidential campaigning. And Hollande is without a nano-second of government practice, let along international experience. Unnervingly, therefore, the answer to the question "Whither France in the world?" is quite simply "We don’t know, because no one has told us".

Hollande arrived at the Elysee Palace this month without much of a foreign policy narrative at all. And yet he was immediately confronted with numerous top-level international meetings of unprecedented intensity. On the day of his inauguration Hollande flew to Berlin to discuss the contentious issues of the Fiscal Treaty with its arch-backer Angela Merkel. After that it was to the United States for his first meeting with President Obama. Hollande had uncomfortable news – France would be pulling its troops out of Afghanistan. Then it was on to summits with the G8, NATO, G20 ones, and last but by no means least, the EU.

Even an experienced diplomat like Kissinger would have found this taxing. Hollande was faced with challenges of breathtaking complexity for a man whose recent overseas experience amounted to little more than put-putting around Greek islands on his motor scooter. However, just two weeks in and he has been doing rather well. We may be facing an unusual phenomenon in French politics: some politicians, through a difficult to analyse combination of virtù and fortuna, are lucky.

When, at the start of his presidential campaign, Hollande said he wanted to renegotiate the Eurozone Fiscal Treaty people laughed. It sounded as if Hollande was just making it up, and that he would pay the price with stock market chaos and Merkel’s ire. But fortuna has been good to him. It soon became clear that he was not alone in wanting more emphasis on growth and less on austerity. Italy piped up, as did Greece, and when Hollande met Obama , even he told him the US wanted stimulus growth in Europe. Even Germany may be changing its tune. With the German CDU getting a drubbing in the May North-Rhine Westphalia elections, and Merkel facing further elections in 2013, its vice-like grip on austerity no longer seems both politically as well as economically unquestionable. Hollande increasingly looks not just competent in capitals across Europe and North America, but also a man possessed with forethought.

Likewise, to tell the leader of the free world that to distinguish himself from his main rival in the election campaign he had to promise French troops would be withdrawn early from Afghanistan is not an easy thing to raise during your first meeting. But once again, luckily for Hollande "Home for Christmas" is logistically near impossible. 3,500 troops, 900 vehicles and 1400 containers cannot be removed from Afghanistan before December. Hollande will withdraw the troops, but in a way that will not trigger the fury of the Americans, while dismaying his domestic audience.

So far, François, so good. It won’t always be like this though. Cuts in spending – in defence especially – are looming, as are a mountain of other problems. And they are truly Himalayan: the ongoing Arab Spring, Syria, Iran, Sub-Saharan Africa. But many of these states are happy with a Hollande presidency. In his desperate attempts to beat off the challenge from the far right, Sarkozy’s campaign angered many of these African States, with its undertones of colonialism and even – intended or not – racism. And France’s former colonies really are ready for a new kind of relationship with the Motherland, who has sometimes been anything but maternal.

But it is not just new relationships with foreign powers that Hollande must forge. He needs quickly to develop a new foreign policy rhetoric and narrative that will define his presidency. Since de Gaulle, a certain logic has driven French foreign policy and the French Socialist Party’s overall foreign policy has not been markedly dissimilar from the mainstream right’s. That is a real shame, for new ideas and approaches from the intelligent, sophisticated, and politically thoughtful French would be so welcome in the world today, given the challenges the world faces.

For today at least, Hollande is one of the luckiest politicians in the history of the Fifth Republic. It remains to be seen: he may turn out to be one of the most skilful, and in foreign policy at least, the most radical.

John Gaffney is the co-director of the Aston Centre for Europe

French President François Hollande meets with Barack Obama following their bilateral meeting in the Oval Office at the White House. Photograph: Getty Images.

John Gaffney is the co-director of the Aston Centre for Europe, specialising in French politics and the discourse of leadership.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR