Posts tagged with: france

Today’s Wall Street Journal Europe carries an editorial titled “Jamais on Sunday” approving of the French government’s attempt to allow some businesses to open on Sunday:

Parliament is likely today to pass a bill that would scrap the 1906 law restricting Sunday work. The law’s original purpose was to keep Sundays sacred — France’s empty churches show how well that’s worked — and the Catholic Church remains a strong supporter. But it has become emblematic of the regulatory red tape strangling the economy. Some 180 exceptions have been made to the law. For instance, a store that sells sunglasses can open on Sunday because sunglasses are considered entertainment, while a store that sells eyeglasses must be closed.

This got me thinking about Pope Benedict’s call in n. 32 of Caritas in Veritate to “prioritize the goal of access to steady employment for everyone” and also about this Foreign Policy piece on Europe’s new “lost generation”:

Unemployment among job seekers under 25 in France has risen more than 40 percent in the past year, while total unemployment rose by about 26 percent. A third of Britain’s unemployed are under 25. Youth unemployment is nudging 40 percent in Spain.

The Baltic states, whose bubble burst so dramatically last fall, have seen the greatest increases. In June 2008, between 8.9 and 11.9 percent of young people in Latvia, Lithuania, and Estonia were out of work. As of the last round of reported data, from March and April, those rates stand between 25 and 35.1 percent — about a threefold increase in less than a year.

[...]

The effects aren’t simply financial. One prominent British think-tanker recently warned, “If this situation persists, the risk may be of a new generation lacking the experience, qualifications, and self-belief to provide for themselves and their families.”

Moreover, youth unemployment, much more so than for older workers, carries dangerous social effects: social exclusion, depression, poorer health, social disruption, and higher incidences of crime, incarceration, and suicide. With every month a teenager is unemployed, for instance, his or her likelihood of being convicted of a crime increases.

[...]

“It’s hard to say whether a whole generation is ‘doomed,’” says Yale University political scientist David Cameron. “The cyclical component will probably start receding a bit in late 2010 or 2011. But we’ll have higher unemployment for a long time to come. Europe needs a growth rate of 2 to 3 percent a year, year after year, to bring the rate down substantially. I don’t think anyone sees that happening anytime soon, if ever.”

“The great benefit is that in a few years, when the Earth turns, there will be thousands fewer [young job-seekers],” says Blanchflower, the former British central banker. “But now, we’re just trying to get these economies moving. And unemployment, especially among young people, is a ticking time bomb.”

(HT: Real Clear World)

The Church’s position against Sunday work makes sense if people actually went to Church, just as it would be absurd for the Church to de-emphasize the great importance due to the Lord’s Day. But with rising unemployment among the youth and the degree of secularization that has already taken place, does it still make any sense?

I remember my graduate school days in Toronto when I first saw bumper stickers that read “Keep Sundays Free for Family and Friends.” I noted the noble sentiments but also the significant absence of God from the Sabbath.

So how has the introduction of Sunday business affected our understanding of Sunday worship? Should the Church argue against market deregulation that would help young people find work and begin their adulthood? Is it impossible to combine Sunday work with Sunday worship? Is it the case that once Sunday is treated like any other day of the week, the Church has already admitted defeat?

Pope Benedict’s visit to secular France and its reformist President Sarkozy has proved to be successful above all expectations, as reported by Vatican newspaper L’Osseservatore Romano. During his Paris homily, at the Esplanade des Invalides, the Holy Father encouraged the 250,000 faithful in attendance to turn to God and to reject false idols, such as money, thirst for material possessions and power.

In his homily the Pope referred to the teachings of Saint Paul to the early Christian communities in which the Apostle warned the ancients of idolatry and greed. The Pope explained how modern society has created its own idols just as the pagans had done in antiquity.

The Pope emphasized that these idols represent a “delusion” that distracts man from reality, that is, from his “true destiny” and “places him in a kingdom of mere appearances” as quoted in Zenit’s article. Benedict underlined that the Church’s condemnation of such idolatry is not, however, a condemnation of the individuals per se, but more so of the evil temptations themselves.

“In our judgments, we must never confuse the sin, which is unacceptable, with the sinner, the state of whose conscience we cannot judge and who, in any case, is always capable of conversion and forgiveness,” he said.

The Pope recognized that the path to God is not always easy, but through the Eucharist, he said, man understands that God “teaches us to shun idols, the illusions of our minds” and that “Christ is the sole and the true Saviour, the only one who points out to man the path to God.”

This does not mean that the Benedict condemns business, trade, all the positive economic phenomenon that allow for wealth and prosperity. But concerned for France’s extreme tendencies toward materialistic relativism, the Pope rightly pointed out how France cannot marginalize itself from religion.

Benedict’s sermon strongly underlined how every believer in the light of God should pursue his own vocation, which may include business or particular talent God has instilled in him.

Had it not been so, I doubt that secular and business orientated President Sarkozy would have ignored State protocol and met the religious leader on his arrival at the airport. The French President was eager to promote “a new dialogue” with the Church and to talk about the need of a “positive laicity” in Europe and its expanding economic unity.

Two weeks ago, French bank Société Générale announced that off-balance sheet speculation by a single “rogue trader” had cost the company 4.9 billion Euros ($7.2 billion). The scandal had enormous repercussions in international markets leading some commentators to decry the rotten nature of global “casino” capitalism and to call for the reversal of financial liberalization. However, the actual circumstances of the case do not justify more government intervention in financial markets but illustrate individual moral failings and poor internal governance on behalf of the bank.

A new report also suggests that a lack of internal controls and weak enforcement of existing rules may be the real source of the problem at one of the oldest banks in France.

On January 24th, Société Générale said that it had discovered a “massive fraud” through “a scheme of elaborate fictitious transactions.” The event caused a great stir not only for the magnitude of the bank’s losses but also because it is partly blamed for the worst European stock market collapse since September 11, 2001.

Jerome Kerviel, who worked as a junior trader in the arbitrage department at Société Générale, was responsible for betting on markets’ future performances. The bank claims that he had made unauthorized and concealed bets of around 50 billion Euros on European markets. According to the New York Times, Mr. Kerviel told prosecutors that his bets would have resulted in a profit of 1.4 billion Euros for the bank if they had been cashed out by the end of December. However, at the start of this year, stock markets experienced a sharp downturn turning the projected profits into losses.

The French bank discovered the bets in mid-January when auditors in the risk management office noticed a series of fictitious trades on its books. Société Générale then conducted a dramatic market sell-off operation in order to neutralize Kerviel’s deals. Traders estimate that the bank unwound contracts in the range of 20 billion to 70 billion Euros from January 21st to 22nd.

Many suspect that selling all these positions into an already volatile European market contributed to the shocking stock market performance in Europe around that time. This in turn, provoked an unexpected and controversial interest rate cut by the Federal Reserve of 0.75 per cent in order to protect the New York Stock Exchange which had been closed on the day when European markets dived. The curious series of events was summed up by a hedge fund manager who told Reuters that: “The real story here is basically, this guy, paid 100,000 Euros a year, sitting in some office at SocGen, forces the Fed to cut interest rates by 75 basis points, which is basically what happened”.

The huge and wide-ranging market repercussions have given ammunition to the critics of financial liberalization. An editorial of the French newspaper Libération sarcastically entitled “Casino” laments that no one controls the huge sums of money moving around in financial markets and demands tighter regulation of financial markets. It also claims that the scandal embarrasses President Sarkozy’s alleged embrace of laissez-faire capitalism. (more…)

It seems that it may be possible. An interesting article from yesterday’s International Herald Tribune:

Danielle Scache tries to avoid using the term “capitalism” in her economics class because it has negative connotations in France.

Instead, she teaches her high school students about the market economy, a slightly less controversial term she started using last year after a two-month internship at the dairy giant Danone. That was an experience that did away with more than one of her own prejudices, she said.

“I was surprised to see that people actually enjoyed working in a company,” said Scache, who is 59. “Some of them were more enthusiastic than many teachers I know.”

“You know,” she confided with a laugh, “in France we often think of companies, especially multinationals, as a place of constant conflict between employees and management.”

This view of bosses and workers as engaged in an endless, antagonistic tug-of-war goes some way toward explaining the two-month rebellion against a new labor law.

Read the whole thing for an interesting look into the state of economic education in France.