France's Christine Lagarde failed on Tuesday to win public backing from India for her bid to lead the IMF as she continued her global roadshow aimed at overcoming opposition in emerging countries.


 

"/> France's Christine Lagarde failed on Tuesday to win public backing from India for her bid to lead the IMF as she continued her global roadshow aimed at overcoming opposition in emerging countries.


 

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POLITICS

India fails to back Lagarde

 

France's Christine Lagarde failed on Tuesday to win public backing from India for her bid to lead the IMF as she continued her global roadshow aimed at overcoming opposition in emerging countries.


 

India fails to back Lagarde

The French finance minister, who has already travelled to Brazil to press her case, met Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee during a day of talks with the Indian leadership.

“I was not here seeking assurance or reassurance. I was here to present my candidacy,” she told reporters afterwards, adding it would have been “premature and arrogant” to expect India to back her.

New Delhi and other large emerging powers have been highly critical of Europe’s stranglehold on the managing director position at the Washington-based IMF, which has been filled by a European since its inception in 1944.

“The selection of the managing director of the IMF or that of the World Bank should be on the basis of merit, competence, and (be made) in a transparent manner,” Mukherjee said after Tuesday’s meetings.

Commentators had predicted before Lagarde’s arrival that India would be unlikely to back her, preferring instead to focus on trying to work with allies in the emerging world to form a consensus on their own candidate.

“She’ll be received warmly, but I’m not sure she will receive open Indian support,” Brahma Chellaney from the Centre for Policy Research think-tank in New Delhi had predicted in an interview with AFP on Monday.

Mukherjee said talks with Brazil, Russia, China and South Africa – the so-called BRICS bloc – were continuing.

“It’s not possible to say whether there will be a common candidate,” he said.

Lagarde, a 55-year-old former lawyer, has pledged to reform the IMF to give emerging and developing countries more power.

India has so far declined to publicly support any candidate in the race to fill the top job at the lender, which fell vacant with the resignation of Dominique Strauss-Kahn over allegations of sexual assault in New York last month.

In a New York court on Monday, the 62-year-old pleaded not guilty to the attempted rape of a hotel maid.

The only other serious contender, Mexico’s central bank chief Agustin Carstens, is to visit Canada on Tuesday and India on Friday on a tour that has already seen him stop off in Brazil and Argentina.

“He is also a competent person and we are going to have a discussion,” Mukherjee said.

The only possible Indian candidate for the job, 68-year-old Montek Singh Ahluwalia, who heads the government’s Planning Commission policy unit, was ruled out because he is over the IMF retirement age of 65.

“I think at this point India would like to see if the Mexican candidate is going to be a credible challenger. They’re hedging their bets safely and have sat on the fence,” Chellaney said.

Prime Minister Singh has conceded that changes to the IMF and other global institutions to reflect the rise of Asia and other emerging countries will take time, telling reporters last month that it would be a “long haul”.

Other Indian officials have stressed that the current voting rights for the IMF give Europe and the United States overwhelming influence and ability to force through their candidate as the next head.

Lagarde is due in China on Wednesday before heading on Friday to Lisbon, where African finance ministers and central bankers will be meeting for the African Development Bank’s annual gathering.

Chellaney said India was also watching China carefully.

Much could hinge on whether China unites with other BRICS nations rather than doing its own deal with Europe and the United States.

Some reports suggest China has agreed to back Lagarde in return for support for its own candidate as her number two.

The Times of India newspaper, quoting unnamed sources, said other Asians were also in the frame for the number two spot, such as Thai Finance Minister Korn Chatikavanij and Singapore Deputy Prime Minister Tharman Shanmugaratnam.

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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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