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POLITICS

Support grows for Lagarde IMF bid

French Finance Minister Christine Lagarde, who has been on a whirlwind tour touting her credentials to head the International Monetary Fund, has won the backing of Egypt, Indonesia and the UAE.

Support grows for Lagarde IMF bid

In Cairo, Foreign Minister Nabil al-Arabi announced Egypt’s support for Lagarde, who is running against Mexico’s central bank chief Agustin Carstens and dark horse candidate Stanley Fischer, governor of the Bank of Israel.

“The Egyptian government supports the candidacy of French Finance Minister Christine Lagarde for the post of managing director of the IMF,” the official MENA news agency quoted Arabi as saying, after he met Lagarde in Cairo.

The French minister said she was pleased with the “very affirmative” support she received in the Egyptian capital.

“In this region, I have the honour of being supported by Bahrain, and of having the support of other Arab countries that have expressed themselves,” she told reporters.

The United Arab Emirates also threw its weight behind Lagarde, with Finance Minister Obeid Humaid al-Tayer hailing the French minister’s central role at G20 meetings under the rotating presidency of France.

In Indonesia, Finance Minister Agus Martowardojo backed Lagarde, describing her as a “professional person, very skilful in interacting between organisations, has high integrity and expertise.”

In Cairo, Lagarde said that under her leadership, the IMF would be dedicated to economic development in north Africa and the Middle East, where pro-democracy protests have swept the region.  

She said earlier that she was “confident” of her chances of heading the IMF, while declining to comment on her Israeli rival for the post.

“I am very confident, particularly after several meetings here in Egypt,” Lagarde told reporters after talks with her Egyptian counterpart Samir Radwan. “We have had excellent meetings.”

Egypt is on the 24-member executive board which is due to reach a consensus on naming a new IMF chief at the end of this month.

On Saturday, Bank of Israel Governor Stanley Fischer – an American economist who took Israeli citizenship and previously held the number two post at the IMF – announced that he too was in the race.

Lagarde, who on Saturday was in Saudi Arabia where she also expressed confidence, declined to comment on Fischer’s candidacy, saying only: “He has past experience as the number two at the IMF… Everybody is free to file a candidacy.”

Israeli Finance Minister Yuval Steinitz told Israel army radio Fischer’s chances of being elected were “not great.”

“One problem is his age. Fischer is 67, which is two years older than the demands for the position,” Steinitz said.

“I hope they find a way around it, it’s not a suitable criteria in this day and age.”

The IMF’s top post opened unexpectedly after Frenchman Dominique Strauss-Kahn resigned on May 18 to fight sexual assault charges in New York.

Despite a whirlwind world tour that has taken her from Brasilia to Beijing via New Delhi, Lagarde has failed to lock official backing from emerging powers in the race to become managing director of the world’s crisis lender.

Emerging nations have baulked at Europe’s 65-year grip on the top job at the Washington-based institution, calling the arrangement outdated.

Europe has come out in force for Lagarde while the United States and Japan, the IMF’s other power brokers, remain publicly uncommitted.

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POLITICS

What does the new government mean for foreigners in France?

France at last has a new government and one of its four main aims is to "control immigration and promote integration" - so what is this likely to mean for foreigners in France, or those hoping to move here some day?

What does the new government mean for foreigners in France?

After two weeks of intense negotiation, on Thursday evening newly-appointed prime minister Michel Barnier announced that he had succeeded in forming a government.

 He also laid out his four main priorities;

  • Improve the standard of living for the French and the workings of public services, especially schools and healthcare
  • Guarantee security, control immigration and improve integration
  • Encourage businesses and agriculture and build upon the economic attractiveness of France
  • Get public finances under control and reduce debt

He is set to give his Discours de politique générale on October 1st – this is the traditional speech that a prime minister makes laying out the main policy aims of their government.

So what is this likely to mean for foreigners living in France?

Obviously some of these things will have the same effect on foreigners as any other residents of France, since we all use the same healthcare and education systems.

The first challenge for the new government will be a budget that, as Barnier says, “gets public finances under control”. France is facing a ballooning deficit and the threat of a downgrade from ratings agencies if it cannot get spending under control.

Barnier said earlier in the week that he is “discovering that the country’s budgetary situation is very serious” – most people interpreted this as preparing to announce tax hikes.

No details of these plans have been released, but it is thought likely that extra taxes will be on business and the super-rich rather than any increase in income tax or VAT.

Emmanuel Macron’s centrist Renaissance group briefed the press that one of their conditions for joining the new government was a pledge that any tax increases would not target “the middle classes or working French people”.

Immigration

But the strand of government that is most likely to affect foreigners in France, or those hoping to move here some day, is the pledge to “control immigration and promote integration”.

Again there is no detail on this, but the French government’s most recent bill to “promote integration” introduced language tests for certain types of residency card, while raising the language standard required for other processes.

We know that Barnier himself is strongly to the right on the topic of immigration – in his unsuccessful 2022 bid for the Les Républicains presidential nomination he called for a total moratorium on all immigration into France from non-EU countries.

Barnier said he would organise a referendum if elected, asking voters to approve constitutional changes and the ability of parliament to set immigrant quotas each year.

The exact composition of the new government has not been revealed – it is expected “before Sunday” – but we do know that Barnier has appointed several ministers from within the Les Républicains party.

These are reported to include Bruno Retailleau, who sparked outcry with his comments about immigrants in the context of the 2022 riots.

Speaking about the rioters who were arrested, 90 percent of whom were French citizens, he said: “OK, they’re French, but these are French people in their official identity, and unfortunately for the second and third generations (of immigrants), there is a sort of regression towards their ethnic roots.”

Clearly for some politicians, you can never be integrated enough.

New laws?

Although it’s far too early to think of any specific policies – and the government may not last long enough to actually see any laws passed – the debate around France’s recent immigration bill does provide some clues about the goals of right-wing politicians.

The Immigration law that finally passed in January changed – among other things – conditions for certain types of residency card and introduced expanded language tests, a civics test and a declaration of allegiance to ‘French values’ for foreigners living here.

READ ALSO What changes under France’s new immigration bill

However as the bill progressed through parliament, many right-wing lawmakers attempted to add amendments to toughen it up. In the end, most of the amendments were either voted down in parliament or struck out later by the Constitutional Council, but they do provide a guide to right-wing goals.

Among the rejected amendments were;

Migration quotas – the original bill contained nothing about migration quotas, but a section on this was added in the Senate (which is controlled by Les Républicains). The amendment was vague, setting out only the principle that parliament can set migration quotas – the wording of the text talked about ‘economic migration’, suggesting that these quotas would apply only to people coming to France to work, not students or retirees. The quotas would not affect asylum seekers or people arriving on a family reunification visa.

It called for parliament to have an annual debate on migration, with the ‘objective’ of setting quotas or numbers.

This was one of many amendments that was eventually struck out by the Constitutional Council – although on procedural grounds, not because of its content.

Healthcare restrictions – currently undocumented foreigners who are in France for more than three months are entitled to basic healthcare under the Aide medicale de l’Etat, with costs reimbursed by the State for hospital treatment and medication. The amendment proposed a complete ban on this for anyone who is undocumented or in an irregular immigration situation.

Benefit restrictions – currently foreigners in France can qualify for benefits such as housing allowance or certain family benefits after they have been resident for six months, the amendment aimed to increase the qualification period to five years.

Expelling radicalised foreigners – the law that was eventually passed makes it easier to expel radicalised foreigners by removing certain protections, including the restriction that people who came to France aged 13 or under cannot be expelled once they reach adulthood. The amendment aimed toughen this up still further by allowing the expulsion not just of people who are on terror watchlists, but of people who have “committed a grave and deliberate violation of the principles of the French Republic”.

Toughen asylum rules – various amendments aimed to make it easier to expel failed asylum seekers by reducing the amount of time for appeals and allowing a notice to quit the country to be served as soon as a first application is rejected.

Limit family reunification rights – rules around foreigners in France being joined by spouses or family members would also be tightened up under the amendment, with a minimum stay of 24 months before you can be joined by a spouse or family member, and extra financial requirements.

French citizenship for children born in France – currently children who are born in France to foreign parents are automatically given the right to French citizenship once they reach 18 under the droit du sol principle (although in order to do anything practical like get a passport or ID card they still need to apply for a naturalisation certificate). Several amendments proposed that this no longer be an automatic right and children must “express their will” to get citizenship – presumably through an extra admin procedures.

All the immigration measures listed above would apply to non-EU nationals – anyone who needs a visa or carte de séjour to spend more than three months in France.

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