Friday, August 21, 2020

How the French government is using Brexit for its economic advantage

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Syed Ahmed Uzair

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How the French government is using Brexit for its economic advantage

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Global Views 360

Publication Date

August 21, 2020

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The Eiffel Tower Paris, France

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.

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February 4, 2021 5:15 PM

Kamala Harris: A Look At Joe Biden’s Running Mate

On August 11, Democratic Party’s nominee for the US Presidential election. Joe Biden chose Kamala Harris as his running mate for vice president. Her selection preceded a lot of noises from within democratic party’s grass-root workers and progressive leaders to choose a woman of colour for the VP position. This was taken as a show of support for the progressive causes  for which Joe Biden nd Democratic Party stand with full force.

Here’s a look at the life and policies of Kamala Harris, who could be the first woman to occupy the position of Vice President of the USA.

Kamala Harris (L) with her mother—Shyamala Gopalan (C) and Sister—Maya Harris (L) | Source: IndiaAbroad

Kamala Harris was born to immigrant parents who came to the USA as students in the 1960s and stayed on to fulfil their dreams. Her Father came from Jamaica in 1961 to pursue economics from UC Berkeley, while her mother came from India in 1958 to pursue research in endocrinology and breast cancer, also from UC Berkeley. They met and married during the social protest movement in the 1960s but got separated while Kamala was only seven years old. Her mother never remarried and took great care of Kamala and her sister Maya.

Kamala’s mother belonged to one of the highest social classes, the Tamil Brahmin but raised both of her daughters as Black American. She kept her contact with the family back in Chennai (earlier known as Madras), India, which continued with Kamala as well.

Kamala spent much of her childhood in Montreal, Quebec, Canada after her parents divorce. After graduating high school she attended Howard University, a historically Black college in Washington, D.C. She is also a member of Alpha Kappa Alpha, a well-known Black sorority. She married Douglas Emhoff, an attorney, in 2014. Her sister is currently a lawyer, an MSNBC political analyst, and has worked with Clinton’s 2016 presidential campaign.

She was the district attorney general of San Francisco and attorney general of California, and was the first Black woman to hold those positions. She went into the profession apparently because she wanted to change the law enforcement system from the inside. Over the years she has repeatedly referred to herself as a “top cop,” though she also prefers “progressive prosecutor.” She became a member of the Senate and has been running for President since 2016.

Her stance on several policies has changed over the years. During her prosecutor years she occupied a classic centrist stance: she supported some reforms to the criminal justice system, which was unique in an era of “tough on crime” policies (that often had racist undertones), but at the same time she tried to keep favour with police officers and unions— perhaps due to her nature as a prosecutor, and was often silent on bills which might have be seen as too polarised towards one end of the spectrum.

Her more well-acclaimed decisions came in the form of programs such as anti-bias training, Open Justice and Back on Track. Open Justice is an online portal that makes various criminal justice data, such as deaths and injuries in police custody, available to the public. Back on Track was about a year long program aimed at young and first-time low-level offenders, offering to waive jail time if they went to school, got a job, and other such goals.

It might be worth noting that a lot of Harris’ actions focus on what can be done after an arrest is made and before incarceration, which inherently means that reducing police brutality and reforming prisons have not yet been great strengths of hers. Since the beginning of the Black Lives Matter movement, civil rights activists have looked up to Harris, a Black woman in a position of power, to lead the change in terms of legislature, but have come out with mixed results. Most of them feel that Harris strives for some reform but never gets too bold, and essentially ends up upholding the status quo.

For instance, around 2015, she made body-worn cameras mandatory for all of the small percentage of special agents employed by the attorney general, but did not support a bill to make them mandatory for all police officers in California, stating that she opposed a “one-size-fits-all approach.” Some of her other decisions while she was a prosecutor have been questioned in recent debates, such as her anti-truancy law, and the evolution of her opinion on marijuana.

Harris has spoken out in support of Kashmiris under Indian occupation after the revocation of article 370. Biden has been critical of the Citizenship Amendment Act. However, she has also described the India-US relationship as “unbreakable”, and even tweeted a welcome message for Indian Prime Minister Narendra Modi on his visit to India in June 2017.

Biden’s choice of Harris as his running mate for vice president is considered by her supporters as symbolic and historic due to her identity as a Black Asian-American and the representation she brings to a powerful stage. Her critics however, have been skeptical due to her career as someone who worked very closely with law enforcement.

Harris, like any other politician, has a checkered past which deserves scrutiny. Those who are rooting for or against her deserve to know about the different aspects of her political, social and other policy positions which helped evolve into the politician she is today and the direction in which she is expected to move in the future. This will be essential for her to appeal to a wider population and add to the votes for Joe Biden in the November 2020 Presidential poll.

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