').insertAfter('.article-content p:nth-child(2) '); $('
').insertAfter('.article-content p:nth-child(6) ');
Friday, August 21, 2020

How the French government is using Brexit for its economic advantage

This article is by

Share this article

The Eiffel Tower Paris, France | Source: Paul Gaudriault via Unsplash

Brexit is an abbreviation for "British exit," which refers to the decision of the UK to leave European Union (UK). The decision to leave the EU was put to a referendum on June 23, 2016 by the then Prime Minister Boris Johnson, which resulted in a 52% to 48% majority for those who called for the UK to leave the EU.

The UK had joined the European Economic Community in 1973, and later became the founding member of European Union in 1992. The entry of the UK had always generated opposition from a section of the political spectrum in the country. It was earlier opposed by the left wing parties followed by the Eurosceptic parties like UKIP (United Kingdom Independence Party) and later propagated by a section of Conservative party.

After a lot of false starts, the UK Parliament ratified Brexit which specified that the UK will leave  the EU on 31 January 2020. An eleven month long transition period was also specified to enable the UK and EU to negotiate their future relationship. During this transition period the UK will remain subject to EU law, remain part of the EU customs union, and single market, but no longer be part of the EU's political bodies or institutions.

Euro, the currency of European Union | Source: Markus Spiske via Unsplash

The loss of the UK, the largest non-eurozone member of the EU means that the focus shifts towards the eurozone members but more importantly it leaves a 75 billion euro deficit in the EU’s budget and raises questions regarding its future direction. In the absence of the UK, it would be challenging for the EU to continue its commitment towards fiscal responsibility, free trade and enlargement of the block.

A 2019 report from New Financial Aid cited that Britain’s exit from the EU would mean the bloc losing its biggest financial centre, London. It also mentioned that many business hubs and financial organizations had started opening hubs in the EU to cope with Brexit.

As per New Financial Britain accounted for almost one-third of the entire capital market activity of the EU, which is more than France and Germany combined. The report had suggested that France and Germany would have a “duopoly” in most major financial sectors post UK’s exit, with France being the dominant in most of the sectors.

Emmanuel Macron, President of France | Source:  Presidencia de la República Mexicana via Wikimedia

The two biggest economies of post-Brexit EU, France and Germany have taken different public postures on Brexit. The president of France, Emmanuel Macron has termed Brexit as a blessing in disguise for France and an opportunity for “European renaissance.” His German counterpart, Angela Merkel has however, chosen to remain silent on the issue.

France has taken an aggressive stance on attracting business away from the UK ever since the 2016 referendum in the UK was won by the leavers in the UK. France under president Macron has rejigged its tax system and reformed its labour laws to create a more business-friendly environment.

Paris had also initiated a poster campaign with the slogan “Tired of the fog? Try the frogs!” in a bid to drive financial investments from London in the wake of the Brexit developments in late 2016. Officials from Paris had also assured stability to the British businesses citing that Paris would be the only global city left in Europe after the exit of Britain.

Arnaud de Bresson, managing director of Paris Europlace, the organization responsible for promoting the financial sector in France points out that Paris is well ahead of its competitors in the EU-27 bloc with nearly 180,000 employees in the financial sector. The next best figures are from Frankfurt with 70,000 workers from the financial sector as per the report by the organization. Brexit has resulted in nearly 80 to 100 financial businesses from London relocating nearly 4000 jobs to Paris, and as per de Bresson this process is “likely to accelerate”.

The French Economy Minister, Bruno Le maire had said in February 2020 that Paris would become the leading financial centre in Europe in the wake of Brexit. He even went ahead to say that the French economy “must take advantage of Brexit”. However, his statements are not exactly accurate. The UK still remains the undisputed leader in the financial sector with 250,000 employees and 7% contribution to its GDP.

French senator Christian Cambon | Source: Boicaro via Wikimedia

French senator Christian Cambon who serves as the co-chair of the Senate Brexit Committee had warned in 2019 that Brexit could have adverse impacts on a few sectors of France’s economy. "Our farmers, our fishermen, our businesses, and the regions of Normandy and Haute France. It will have consequences for all these areas and for the whole of the EU, it could even give other members some ideas. That’s why we want to follow the process step by step while abiding by the competences of the Senate." French fishing industry members have had concerns over being denied access to British waters post Brexit, considering that 75% of fishing taking place in Haute France is in British territorial waters.

However, President Macron remains as optimistic as ever regarding Brexit’s impact on the nation’s economy and has been actively promoting his nation via a series of reforms to attract businesses and investments. He also launched the 'Choose France' package which provides financial help and English-language support to UK based businesses that want to move to France.

The short-term projections are pointing to be somewhat in favour of France, it remains to be seen if Brexit will have a positive impact on the nation’s economy in the longer run or the UK will have the last laugh.

Support us to bring the world closer

To keep our content accessible we don't charge anything from our readers and rely on donations to continue working. Your support is critical in keeping Global Views 360 independent and helps us to present a well-rounded world view on different international issues for you. Every contribution, however big or small, is valuable for us to keep on delivering in future as well.

Support Us

Share this article

Read More

October 18, 2020 6:46 PM

Bhagat Singh: The Man, The Life, And The Beliefs

Bhagat Singh is one of the ‘big names’ immortalised in the history of India’s freedom struggle and eternally cherished even after almost ninety years of his martyrdom. What makes him stand out is his popularity among the masses being almost on par with the likes of Mahatma Gandhi and Jawaharlal Nehru, despite his beliefs and actions being diametrically opposite to theirs.

Of the freedom fighters who remain mainstream in today’s India— a crowd predominantly made up of politicians with center or right of centre leanings, Bhagat Singh occupies a relatively lonely spot as a young, staunchly left-wing revolutionary who outrightly rejected Gandhi’s philosophy, and preferred direct action over politics.

Newspaper headline after Central Legislative Assembly non-lethal bombing

Bhagat Singh is most commonly and widely remembered in association with an incident where he, along with his friend and comrade B.K. Dutt dropped non-lethal smoke bombs into the Central Legislative Assembly from its balcony in 1929. They also scattered leaflets by the Hindustan Socialist Republican Association (HSRA), which he was a major part of and was aided by in orchestrating the bombings. He is said to have been inspired by French anarchist Auguste Vaillant, who had bombed the Chamber of Deputies in Paris in 1893.

The bombing gathered widespread negative reaction due to the use of violence, especially from those who supported the Gandhian method. While Bhagat Singh and the HSRA wanted to protest exploitative legislatures such as the Public Safety Act and the Trades Disputes Bill, it is also widely accepted that they additionally intended to use the drama and public attention of the ensuing trial to garner attention to socialist and communist causes. Bhagat Singh and Dutt did not escape under the cover of panic and smoke despite the former carrying a pistol, and waited for the police to find and arrest them. During the trial Bhagat Singh frequently chanted a variety of slogans, such as ‘Inquilab Zindabad,’ which is even today often raised in protests across India.  

March 25th Newspaper carrying the news about execution of Bhagat Singh | Source: Tribune India

However, this was not the trial that ended in Bhagat Singh receiving his execution sentence. Before the Assembly bombings, Bhagat Singh had been involved in the shooting of police officer John Saunders, in connection to the death of freedom fighter Lala Lajpat Rai. At that time he and his associates had escaped, but after Bhagat Singh was awarded a life sentence for the Assembly bombing, a series of investigations led to his rearrest as part of the Saunders murder case. It was this trial— generally regarded as unjust— that led to his much protested execution sentence.

Bhagat Singh was hanged to death on the eve of March 23rd, 1931 and he was just twenty-three years old.

Despite the criticism he received for his actions, his execution sentence was widely opposed and many attempts were made to challenge it. In fact, his execution came on the eve of the Congress party’s annual convention, as protests against it worsened. He was memorialised nationwide as a martyr, and is often addressed with the honorific Shaheed-e-Azam Bhagat Singh.

Apart from being a socialist, Bhagat Singh was attracted to communist and anarchist causes as well. In ‘To Young Political Workers,’ his last testament before his death, he called for a “socialist order” and a reconstruction of society on a “new, i.e, Marxist basis.” He considered the government “a weapon in the hand of the ruling class”, which is reflected in his belief that Gandhian philosophy only meant the “replacement of one set of exploiters for another.” Additionally, he wrote a series of articles on anarchism, wanting to fight against mainstream miscontrusions of the word and explain his interest in anarchist ideology.

Bipin Chandra, who wrote the introduction to Why I am an Atheist by Bhagat Singh | Source: Wikimedia

While writing the introduction to Bhagat Singh’s remarkable essay Why I am an Atheist in 1979, Late Bipan Chandra described the Marxist leaning of Bhagat Singh and his associates in the following way;

Bhagat Singh was not only one of India’s greatest freedom fighters and revolutionary socialists, but also one of its early Marxist thinkers and ideologues. Unfortunately, this last aspect is relatively unknown with the result that all sorts of reactionaries, obscurantists and communalists have been wrongly and dishonestly trying to utilise for their own politics and ideologies the name and fame of Bhagat Singh and his comrades such as Chandra Shekhar Azad.”

Bhagat Singh is often admired and celebrated for his dedication to the cause of liberation. However his socialist, communist and anarchist beliefs were suppressed by the successive governments in Independent India. This in a way is the suppression of a revolutionary who has the potential to inspire, unite and motivate the growing population of a spectrum of activists all over India, in direct response to the fast-spreading divisiveness and intolerance in the country, often patronised by the groups and organizations professing the right-wing fascist ideology.

Bhagat Singh’s dreams of a new social order live on, not just in his writings, but also reflected in the hearts of every activist, protester, and dissenting citizen. The fight for freedom, revolution, Inquilab, may have changed in meaning, but it is far from over.

Read More