Why do the leading candidates in the French presidential election seem to have utterly strange European policies?
Take Nicolas Sarkozy. He supposedly believes in “rupture” with old ways and a dash for a new free-market, hard-nosed, toughness cult future. And Euroscepticism is at the heart of this. But at the same time, he has promised to restore le productivisme – that is to say, the maximisation of volume – as the guiding principle of the Common Agricultural Policy.
That’s not free-market, tough, eurosceptic, hard-nosed, liberal, or anything else, except for pure clientele politics. Better yet, it’s the kind of clientele politics that uses other people’s money. Yawn. Not that the peasants’ representatives believes in it – one of them recently said that “there are no cloned Chiracs available”.
Fascinatingly, he’s also now blaming the European Central Bank for its exchange rate policy – as is SÃ©golÃ©ne Royal. Sarko thinks the trouble at Airbus is all down to the bank’s “policy of over-valuation against the dollar.” Sego apparently asked for Angela Merkel to help change the ECB’s charter so that “its sole objective would not be the exchange rate.”
One problem – the exchange rate is not the objective of the ECB. The ECB does not target the exchange rate. This is, of course, all part of the game with the straining “Bretton Woods II” arrangement between the US and China pushing the adjustment burden our way. But – the ECB does not stock and does not sell exchange rate targets.