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Catastrophe averted?

The leaders of the rich countries went to Washington to save the world from sliding into deep recess

Vincent Cable

Shadow chancellor, Liberal Democrats

By the low standards of economic summitry, the G20 meeting rated quite high. There was a predictable, no doubt pre-written, communiqué, full of the usual banalities. And the meeting suffered from the absence of the world's most important politician, who hasn't yet taken up office. But, these necessary caveats aside, there were important achievements.

The first is that the meeting took place at all. The ludicrous pretence of the G8 (or G7) that the old western powers should set the global economic agenda has been punctured for good. On a purchasing power parity basis, China has the second-biggest economy in the world and India the fourth. It has been clear for some time that China is lender of last resort to the global system (by, in effect, underwriting US government paper) and the main source of global incremental demand (and commodity price inflation). The Chinese self-parody as the pupil sitting meekly at the feet of a dominant, but erring, master defies belief. It is obviously right that China, India and the other main non-G7 countries should be at the top table.

The second achievement was the clear realisation that unless governments hang together they will hang separately. Enough has been learned from interwar history for us to understand the follies of beggar-my-neighbour economics. Perhaps a warning shock was being sent across the bows of the incoming Obama administration not to reinvent the protectionist tariffs of the 1930s in a new guise, directed at China or Mexico in particular, or aiming to salvage the US auto industry through public subsidy. But this new-found concern for open markets has not yet communicated itself to EU or Indian or Chinese trade negotiators, who show no enthusiasm for lifting the block on trade liberalisation under the Doha round.

While trade policy is on the back burner, macroeconomic policy co-ordination is not. With a few exceptions - Germany notably - there is recognition of the need for aggressive monetary and fiscal policy and for large-scale intervention to recapitalise banks. These interventions can be and are being undertaken nationally. But governments acting in isolation attract critical attention from capital markets and currency speculators, as Gordon Brown is discovering. Structures like the G20 are the best safeguard against chaotic, unilateral action.

Will Hutton

Economic commentator

It was remarkable to gather so much economic and political power in one room to address a common agenda. That was the good news - along with commitments to co-ordinate fiscal expansion, to expand the lending power of the IMF and World Bank (Japan's $100bn loan to the IMF will increase the Fund's lending capacity by 40 per cent), to boost cross-border supervision, to tackle credit rating agencies, to reassess mad accounting rules and require member countries to attack the bonus culture in the financial services industry. A year ago such an agreement would have been inconceivable.

The bad news is that much of this is shutting the stable door after the horse has bolted. Four things have to be recognised: that the world has profound imbalances between high-saving, high-surplus areas in Asia and the Gulf and low-saving, structural deficit countries in the transatlantic economy (Germany excepted); that a system of floating exchange rates and private banks can no longer take the weight of recycling those savings; that unless the system is de-risked and the burden of adjustment is placed on deficit and surplus countries alike, the global system faces breakdown; and finally, that the business model used by the banks to recycle surpluses - securitisation and hedging in the $360trn global derivatives market - is broken.

In plain English, China must accept that its currency must appreciate; Britain and America, that they cannot run their economies on foreign savings; and all players that there has to be a system of semi-fixed exchange rates between the yen, the euro and the dollar.

One tough reality is that, for all their new economic weight, China, Brazil, Russia and India do not have fully convertible currencies - nor do they want to accept the discipline involved in having convertible currencies.

Ann Pettifor

Fellow, New Economics Foundation

Over the past decade, the Group of Eight leaders turned their exclusive annual meetings into jamborees. Rock concerts, protesters and celebrities added populist glitz. However, the real purpose of the meetings - international co-operation and co-ordination - was ducked. At last year's G8 Summit in Heiligendamm, Germany, George W Bush and Gordon Brown vetoed Angela Merkel's agenda item for co-operation over tighter international regulation and financial oversight of capital markets. That task, they argued then, could safely be delegated to "the invisible hand". Now that the fantastic, self-regulating machinery of free markets has proved grossly malfunctional, it is good to hear talk of enhanced co-operation and regulation.

But, in places, the joint statement issued by the 20 world leaders borders on the delusional. The phrase "We must . . . ensure . . . that a global crisis, such as this one, does not happen again" implies that they are avoiding the next war when they are still losing this one.

Even more questionable is the call for continued "economic growth". In a world of finite resources on a planet with limited capacity to absorb toxic emissions, and with bushfires encircling Los Angeles, we would have hoped that world leaders had some awareness of the threat of climate change and of the limits to economic growth. But no. The gravest threat to global security - our rapacious attitude to the earth's resources - is once again whipped up with talk of "market principles, open trade and economic growth".

Jesse Norman

Senior fellow at Policy Exchange

One might have thought the G20 summit a good moment for some straight talk from the Prime Minister. Instead, the political wind machine was cranked up to full blast. The summit would be a second Bretton Woods. Gordon Brown would forge a new global consensus on co-ordinated intervention to stimulate growth (while, of course, leading reforms to prevent the banking crisis from ever recurring). Luckily virtually none of this was true, or the summit would have been a hopeless failure. With fiscal measures already widely adopted, the G20 hardly needed Brown's leadership. No surprise that he returned empty-handed.

Labour has moved from despondency to a manic desperation to remain in office. The result is that the ever-fragile concept of truth in politics has wholly been cast aside. Thus the humiliating bank nationalisation has been dressed up as an act of far-seeing economic statesmanship. And a sensible warning from the shadow chancellor that current economic policy puts sterling at risk has been condemned for breaching an irrelevant semi-convention dating from the time of fixed exchange rates.

Alex Brummer

City editor, Daily Mail

There is a golden rule of international financial meetings. The larger the "G" number, in other words the more countries involved, the less likely it is that any worthwhile or binding decisions will be taken. So while it was wholly encouraging that the G20 summit brought a number of emerging market leaders to the top table of finance, including China, Brazil and Russia, there was never any real prospect of the event becoming the new Bretton Woods.

Furthermore, the summit took place in the final days of the lame duck administration of George Bush. Once it became clear Barack Obama was going nowhere near the confab, the event became even more of an irrelevance.

European leaders may like to blame Wall Street and Anglo-Saxon capitalism for the credit crunch and the recession now spreading through the Group of Seven like wildfire, but there is no hope of concerted international action without the new White House and Federal Reserve on board.

Almost all that was agreed could have been decided before the leaders left home. The commitment to reviving the Doha trade round is pure motherhood and apple pie. The prairie populists on Capitol Hill are unlikely to be enthusiastic.

At the core of the proposals was the commitment to use fiscal measures, tax cuts and public spending to kick-start global economies. But despite Gordon Brown's enthusiastic embrace of a new Keynesian big-spending approach - as advocated by Nobel prize-winner Paul Krugman - he neatly forgot to mention that such big-spending ways were only for those countries with a "policy framework conducive to fiscal sustainability". The UK with its ballooning budget deficit, which could hit £100bn or more next year, is clearly in no such position.

It is hard to fathom in what way the G20 was "historic", as the Prime Minister claimed in the Commons. There is little original in a bunch of old ideas designed to remove risk from the financial system and control executive pay. That is what regulators should have done before the banks ploughed into the iceberg.

James Buchan

Author and financial commentator

What is the Financial Stability Forum? What is "mitigating against pro-cyclicality in regulatory policy"? What, if anything, has the G20 summit in Washington on the weekend of the 15 November achieved?

Nothing very much, is the answer to all three questions. In the twilight of a discredited US administration, and with President-elect Barack Obama absent, the meeting was never likely to achieve a great deal or generate excitement in the US. Yet the final declaration, drafted with suspicious ease by the delegations on Saturday night, has something for everybody but not enough of anything to scare the financial horses.

Nicolas Sarkozy, the French president whose idea the whole thing was, gained some support for more institutional government of trade and finance, but no super-gendarme international of the type that has been directing financial traffic in the French imagination since the 17th century. As Jean-Pierre Robin wrote in the Figaro: "Those with fantasies of supranational supervision will need to change therapist." The US, jealous of its commercial sovereignty even when it is going about without its shirt, put paid to those Gallic dreams and also gained some platitudes about free trade.

The new commercial powers, not only Brazil, Russia, India and mainland China but also rich oil producers such as Saudi Arabia, received diplomatic recognition of their deep pockets. "The world's geopolitical structure has a new dimension," the Brazilian president, Luiz Inácio Lula da Silva, said. "There is no logic to making any political and economic decisions without the G20 members - developing countries must be part of the solution to the global financial crisis."

I suspect the winner is Gordon Brown. The next meeting will be held under his presidency in London in April. The Washington ragbag of proposals to reform or tinker with the current system, such as reminding us about the Financial Stability Form and mitigating against that regrettable pro-cyclicality in regulatory policy, appeals to his technical vanity and plays to his technical strengths.

Paul Mason

Economics editor, Newsnight

There was a sense in Washington, despite the throbbing engines and bulletproof glass, of powerlessness. The communiqué was stronger on the causes of the crisis than on co-ordinated solutions. Policymakers are right to stay focused on the near-term dangers: these are country-level debt default, the rising cost of borrowing for non-financial companies, rapid job losses and - via feedback - further destabilisation of the banking system. We are moving into the phase of fiscal stimulus but there are powerful technical arguments that say without "quantitative easing" - that is, printing money to stimulate demand - it doesn't work. The same people who told me it would come to recapitalisation, that the TARP (troubled assets relief programme) would not work, are now saying: nationalise the banks and print money.

Despite the urgency of the focus on near-term dangers, what was obvious at G20 was the lack of vision as to the future growth model of capitalism. The problem was seen as a failure of regulation; the solution a pretty weak brew of re-regulation that will get diluted even more as the lobbyists begin to have influence. But the problem is more fundamental: the growth model based on high debt instead of high wages has failed and will be hard to revive.

Peter Mandelson

Secretary of State for Business

We have been caught in a global whirlwind of extraordinary force.

It has brought with it a fear that has gripped the world economy and taken hold here at home. We are seeing it every day, with fear among consumers that is depressing demand; fear among banks that is inhibiting them from lending; fear among small- and medium-sized businesses that banks are just about to cut off their credit lines. The choice facing us and governments around the world is this: do we act decisively to counter and overcome this fear, or do we become paralysed by it and fail to act?

The government has already shown its willingness to take the bolder course as the first mover in setting about stabilising the banks. What is needed now is action to stimulate the demand essential for recovery. The UK economy, like economies in the rest of the world, needs a shot of adrenalin.

The Bank of England has already made a significant cut to interest rates. This monetary stimulus now needs to be matched by a fiscal stimulus. And because this is a global crisis this is best done if the benefit of the measures taken nationally is maximised by the same measures being taken around the world. That was the message from the international conference in Washington, as governments recognised the need to take the action necessary to stimulate their economies.

People will say, "But you are resorting to borrowing in order to deliver the stimulus that's needed." My answer to that is, what is the alternative? We certainly haven't heard one from the Conservatives.

David Cameron and George Osborne, trapped by their desire to oppose everything the government does, refuse to accept the scale of the challenge the world's economies now face and the prescribed international action. Their stance appears to be, if the rest of the world disagrees with us, it is because the rest of the world is wrong. The result is incoherence and an Opposition at sixes and sevens. One minute this is "do all it takes" and the next it is - as we heard this week - leave the recession to "take its course".

Sitting on our hands watching houses repossessed and businesses go to the wall is certainly not the approach being urged on me by people I have been speaking to up and down the country. They want their government to act to stimulate demand in the economy here and now. With all due prudence, that is what we are going to do.

Diane Coyle

Author and economist

The G20 meeting confirmed a robust and rapid response (by past standards) to recession, even in the US operating under a rump free-market administration. Policymakers around the world have been shaken to see the financial system at the brink of collapse - on their watch.

Yet it is difficult to predict how severe the recession will be. Bank lending to businesses and individuals is virtually frozen. In many (but not all) areas of the economy, activity has come to a halt. The last financial boom and bust, ending in 2001, had surprisingly little impact on jobs and growth, as the financial bubble had become increasingly untethered from anything real. Today's vicious circle of evaporating liquidity is much more serious, but lower interest rates and bigger government deficits will help. The underlying trends are easier to outline. Some challenges are clearly unaltered, such as climate change and our ageing society.

The technological opportunities are still there, too, in communications, the internet and biotechnology. Globalisation will be less driven by finance in future, but it will not be unwound. It would take a generation to turn back the clock on economic linkages, and the cultural impacts are permanent. In fact, the crisis has underlined our interdependence across national borders.

What has changed is the political economy of globalisation. In the triad of efficiency, fairness and freedom which dominates political choice in democracies, fairness will take priority in the years ahead, and the drive for ever greater productivity gains will retreat. The semi-nationalisation of the banks has started to shift the boundary between public and private domains; we will have to think more carefully about how to govern private choices that have big social spillovers. The G20 did not touch on this profound question of governance.

Iain Macwhirter

Political commentator

The G20 was largely a throat-clearing session and was never going to put in place the foundations of a new international financial system. Progress on the stalled Doha trade talks is encouraging but provides no guarantee that protectionism will not raise its head in the coming economic slump.

It is inevitable that countries faced with financial collapse will try to defend their economies by any means possible. Britain is already far down the road of "beggar my neighbour" economics by the "managed" devaluation of the pound, a crude attempt to boost UK industry by lowering the prices of British exports and creating a de facto tariff wall around imports from abroad. It won't work because Britain does not make much of anything any more except debt, and the world has plenty of that already.

But the collapse of the pound will seriously damage what is left of UK financial services. No one in their right minds would put money into the UK economy now, with the property market collapsing, UK banks insolvent and government borrowing likely to reach £100bn in the next 18 months.

Gordon Brown seems to believe that sterling is like the dollar, and that people will buy our dud pounds whatever the likely losses. However, as we are discovering, sterling is not a reserve currency and unlike the US we cannot force other countries to pay our debts. The future for our battered island is likely to be hyperinflation punctuated by appeals to the International Monetary Fund for emergency aid. Forget about spending our way out of recession - the UK government simply lacks the resources to fund the huge borrowing that would be required. Something will have to give. Brown will have cause to regret being so beastly to the Icelanders.

Richard Reeves

Director of Demos

James Carville, the hardened political aide to Bill Clinton, said that if he was reincarnated he'd want to come back as the bond market: "You can intimidate anybody." Right now it seems odd to think of any financial markets threatening anybody. But it is one of the ironies of the current economic situation that the capital markets still have some serious muscle.

Western governments, faced with recession, need to throw a lot of money at their ailing financial institutions - money that can be raised only by selling Treasury debt, mostly to the capital-rich investors of the Far East. For Gordon Brown, this is likely to become a more difficult sell, as Prudence is given the push and the pound takes a nosedive. Even national exchequers invite sceptical scrutiny in this new, nervous world.

The financial crisis is at heart a loss of faith. The word credit derives from the Latin credo - "I believe". When the Titanic of the financial world - in the shape of Lehman Brothers - was allowed to sink, the bonds of trust stretching around the world were snapped. In an instant, everyone stopped believing in each other.

A number of sensible measures should be on the agenda when the G20 reconvenes next year, including legislation to ensure bonuses in financial services are paid on the basis of five-year performance; new "pro-cyclical" provisioning rules requiring finance houses to increase their store of capital in economic upturns; and tougher, independent regulation of the rating agencies whose doe-eyed assessments of banks built on a mountain of paper helped get us in this mess.

There is, however, no quick technical fix for such a dramatic loss of confidence. Trust can be lost in the blink of a market-trader's eye - but it will take years to rebuild.

TEN THINGS THEY ACHIEVED

  • 1 Created a road map aimed at stabilising the world economy and overhauling the banking system with targets for the end of March 2009
  • 2 Advocated Keynesian big-spending
    “fiscal stimulus”
  • 3 Expanded from a small club making world decisions to recognise the importance of the economies of Brazil, Russia, India and China
  • 4 Agreed to reform international finance institutions, including better transparency and supervision of credit ratings agencies
  • 5 Agreed that the Financial Stability Forum should include emerging economies
  • 6 Banks and hedge funds to hold increased levels of capital and cash
  • 7 Recommended “supervisory colleges” for all major cross-border financial institutions
  • 8 Return to the Doha round – trade ministers to meet in Geneva next month
  • 9 Instructed G20 finance ministers to draw up plans and timeline
  • 10 Agreed to meet again, in London next April

. . . AND FIVE THEY DIDN’T

  • 1 Agree a future growth model for capitalism. Instead they reconfirmed their “shared belief in market principles”
  • 2 Agree detailed plans for regulatory reforms of banking
  • 3 Establish a plan of action for achieving the already endangered Millennium Development Goals
  • 4 Set up an international supervisory body with sufficient power to control global markets
  • 5 Halt the run on sterling, which fell sharply against the euro and dollar

Alyssa McDonald

This article first appeared in the 24 November 2008 issue of the New Statesman, How to get us out of this mess

Jean-Luc Mélenchon. Photo; Getty
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How Jean-Luc Mélenchon built a resistance

Like Jeremy Corbyn, France's leftist candidate for the presidency has been caricatured by the media. Nonetheless, he has succeeded in building a movement. 

After months of indifference, the rise of Jean-Luc Mélenchon in the French presidential race has finally caught the attention of the British media. Still, it is frequently misrepresented and reduced to familiar categories: populism, Euroscepticism and spendthriftedness, with commentators quick to draw parallels with Jeremy Corbyn. However, to boil down the Mélenchon phenomenon to such clichés is to fundamentally misunderstand it. 

The authors of this article propose taking a closer look at a highly innovative manifesto and campaign. Cambridge University lecturer Olivier Tonneau is involved with La France Insoumise (France Defiant) and co-authored the cartoon version of Mélenchon’s programme. He runs a blog dedicated to exposing its policies and addressing the many rumours and falsehoods floated about the candidate. Nick Jones is a student who was in Paris at the time of Nuit Debout, and experienced first-hand the energy and thirst for radical change in France.

***

Given the deep wound that Brexit has inflicted upon British society, perhaps the most urgent clarification is that Mélenchon does not wish to leave the EU, although he does have a radical strategy to reform it. France and Britain have different relations to the EU. Whilst Britain’s austerity policies were self-inflicted, the same is not true of France. The French people voted “no” to the European constitution in 2005 only to see its vote overturned in Parliament by a coalition of the center-left and center-right parties. This event marked a tectonic shift in French politics, and incidentally determined Mélenchon’s break from the Socialist Party. In 2012, François Hollande was elected on the promise of renegotiating the Lisbon treaty, a promise he failed to hold, and proceeded to impose austerity measures in France (cutting down public spending and corporate taxes, flexibilising the labour market), constantly justifying these measures by the necessity to abide by European norms. He has thus fuelled a deep resentment against both the center-left and the EU. Meanwhile, Mélenchon has campaigned for a showdown with the EU: reform it or leave it (“plan A, plan B”).

His strategy, designed by his chief economist Jacques Généreux, consists of unilaterally disobeying European Treatises: disregarding budgetary norms to implement a Keynesian stimulus package, creating a public investment bank, and ending privatisation policies. His prognosis is that the EU will not dare exclude France because such an exclusion would signal the end of the European project altogether. The EU will thus have to inscribe French exceptions to the treatises (just as it had done for UK). Such exceptions could prove highly desirable to other austerity-stricken countries such as the infamous PIIGS (Portugal, Ireland, Italy, Greece and Spain), with enormous pressure placed on the most intransigent promoters of austerity, the chief of which is Germany.

Far from being anti-European, this strategy is aimed to save the European project which, according to Généreux, is doomed to implode if unreformed. Généreux had reached this conclusion as early as 2012: Brexit and the European-wide rise of the far-right has confirmed his diagnosis. Unencumbered by a reluctant party, Mélenchon has been able to forcefully defend a position that Corbyn was unable to hold, thus shattering the “in/out, good/bad” dichotomy of the Remain and Leave campaigns in the UK.

Already, by 2012, Mélenchon’s Parti de Gauche (co-founded with the Green MP Martine Billard) had published an eco-socialist manifesto which advanced on the Left’s historical bend towards productivism. This time round, Mélenchon’s program is an environmentally focused Keynesian plan. Its aim is to turn France into using 100 per cent renewable energy by 2050 – ending the country’s heavy dependence on nuclear power – by implementing the “negawatt scenario” elaborated by a collective of scientists and engineers.

Mélenchon is especially determined to make the most of France’s maritime territory – the second largest in the world. His program also addresses in detail matters of public health: for instance, schools should serve organically sourced products exclusively, securing a market for organic producers. The turn to organic production, for instance, is expected to create 300,000 jobs. Mélenchon’s environmental plans tie in neatly with forensic budgeting and a clear plan for job-growth, in line with the “One Million Climate Jobs Now” campaign in the UK.

Another aspect of Mélenchon’s Keynesian plan is its redistributive policies. Low and middle wages are spent within the economy on essential goods such as food and clothing, whereas high wages are lost in the speculative bubble: by raising the minimum wage, pensions, and social benefits, Mélenchon intends to boost demand and help small and medium businesses prosper. He also acknowledges the need to reduce working time, without necessarily cutting the length of the working week. Instead, he wishes to return the retirement age to 60 – a measure that is acutely urgent given the high unemployment rate among senior citizens – and impose a strict adherence to the current, 35-hour week.

Impossible to fund? Not at all. More than hundred economists from 17 countries – including Ha-Joon Chang – published a column supporting Mélenchon’s program. His policies were presented in details by economists and high-ranking public servants in a 5-hour budget program broadcasted on YouTube, whose last hour was a discussion with economic journalists from liberal news outlets. Ghilaine Ottenheimer from Challenge praised the broadcast as “modern” and “bold”; Hedwige Chevrillon (BFM Business) compared the approach to that of the ‘slow food movement’ and deemed it a rare opportunity to think things through; Marc Landré (Le Figaro) was impressed by the openness with which La France Insoumise was laying itself open to criticism.

The broadcast has already been viewed more than half a million times. On every aspect of its program, from the environment to counter-terrorism via culture and international relations, La France Insoumise has taken the same care to involve experts. Who, then, are the ‘Insoumis’? How did such an extraordinary campaign get off the ground? This question takes us back to 2012.

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After Mélenchon’s remarkable 2012 campaign, the Front de Gauche fell apart because of strategic disagreements: the Communist Party wanted to maintain alliances with the Socialist Party whereas Mélenchon was convinced that any association with the now hugely-unpopular party of Hollande could only drag them with its fall. When Mélenchon claimed in 2015 that he did not aim to ‘unite the left’ but to ‘federate the people’, it was widely perceived as the desperate gambit of an isolated figure. And yet the gambit paid off: there was indeed a people to answer his call. With the massive demonstrations against Macron’s labour laws and the grassroots movement Nuit Debout, the writing was on the wall. Mélenchon was careful not to lay claims to these movements which were profoundly suspicious of established politicians and parties, but he has nevertheless been able to tap into their energy by creating La France Insoumise, a loose structure within which everybody contributes freely.

The Insoumis have shown ebullient creativity: some created a board game, others a computer game (Fiscal Kombat), and one of the authors of the present article wrote a comic book adaptation of the manifesto. Alongside quirky stunts such as appearing at meetings via hologram, the Insoumis have brought a vitally seductive and energetic edge to Mélenchon’s campaign. Crucially, they have brought to fruition another aspect of Mélenchon’s strategy: his struggle against the press.

In 2012, Mélenchon often claimed that the media was the “second skin of the system”. The only way to break the neoliberal hegemony was to subvert its own logic: that of audience and profit. Thus was created the colourful figure who claimed to incarnate “the sound and the fury of his time”. Yet, having become a celebrity, Mélenchon had to avoid being pigeon-holed into a caricature. The media, he claims, are “not a mirror but an arena”, so he adopted a confrontational strategy aimed at exposing the biases of journalists and interviewers.

Yet there is only so much one can say in the constraining format of TV and radio interviews; all one could achieve was to fire “bullet words” that would open cracks in the listeners’ preconceptions. In response, listeners had to be provided with alternative sources of information. In 2012, Mélenchon’s blog was the most read of any French politician; in 2013, a galaxy of “6th Republic blogs” was created; in 2016 Mélenchon’s extremely successful YouTube channel was launched; it has so far has over 22 million views. The book detailing his manifesto, L’Avenir en commun (A Shared Future) has found its way into bestseller lists, shifting well over 250,000 copies. If such independently-made material is inaccessible to non-French speakers, international viewers should not be tricked into seeing it as Trump-style, anti-system fake news. For example, a host of global NGOs including Oxfam and ActionAid have backed key aspects of Mélenchon’s campaign, with Amnesty and Greenpeace ranking him highest overall in their breakdown of all the candidate’s policies. Leading economists have also signed a pledge backing his candidacy will be published this week.

The communication machine of Defiant France is firing on all cylinders. It is remarkable that the fear-mongering of the mainstream media has failed to halt Mélenchon’s surge in the polls – remarkable, but not surprising given that his latest meeting, in Toulouse, was attended by 70,000 people, and had attracted 320,000 views on YouTube in under 24 hours. 

***

Do not be mistaken: something astonishing is happening. This is about much more than meeting attendance. To be sure, Mélenchon is not simply preaching to the choir: bucking all recent trends, recent polls have shown that he is denting Marine Le Pen’s share of the working-class vote, and has overtaken her as the most favoured candidate of the youth. People are flocking from all across the political spectrum: recently, an entrepreneur from the Silicon Valley published a piece titled If Mélenchon is elected, I return to France.

He is not an isolated case, and a petition of the entrepreneurs with Mélenchon has just been launched. Even the ‘Gaullists’, disillusioned with the Fillon scandals, are now seduced by Mélenchon’s cultural style, his integrity, and his vision of France’s place in the world which is in line with the tradition of the General himself. What seemed like a fanciful vision is thus coming true: the French people is being transformed. One of the most striking signs of the campaign’s success is the change in people’s priorities: whilst employment had always ranked first, it has now been displaced by institutional reform. This, of course, is intrinsically tied to the centrepiece of Mélenchon’s program, which aims to accomplish no less than a Révolution citoyenne: creating the 6th Republic by means of a Constituent Assembly.

Under the Nazi Occupation of France, resistance networks sought not only to liberate the country, but also to bring about a better world. At great peril, they formed the National Resistance Council and drafted a program which was circulated under the cover of a novel titled Les Jours Heureux. It is no coincidence that the crowds at Mélenchon’s meetings do not chant his name but the word “resistance”, and that Melenchon himself synthetizes his aim with the phrase “let us bring forth the happy days”. The perils are undoubtedly lesser but with a deeply dysfunctional economic system preventing us from addressing climate change and fuelling the rise of the far-right, the stakes may be even higher.

Olivier Tonneau is lecturer in Modern and Medieval Languages at Homerton College, Cambridge. He participates in La France Insoumise, the movement supporting Jean-Luc mélenchon's presidential campaign. He writes a blog on French politics. Nick Jones is in the final year of his undergraduate degree studying French at Homerton. During his year abroad in Paris, he was a participant in, and keen observer of, the grassroots movement Nuit Debout. 

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