France

Holland and Hollande; they’re the non-identical twins that are causing palpitations across Europe today. Holland, because the country’s Prime Minister yesterday resigned after failing to agree a package of cuts for his country’s budget. Hollande, because he’s the socialist candidate set to win the presidential election in France, probably eroding that country’s commitment to fiscal consolidation in the process. The markets quivered in fear at this morning’s headlines — and what they mean for the eurozone — even if they have, in some parts, slightly recovered since. It’s all another reminder that the Eurocrisis just isn’t going away — neither for countries such as France and the Netherlands, nor for

Who on earth does Nicolas Sarkozy think he is? The answer, of course, is President of the French Republic. And from that position — and propelled by the Toulouse shootings and doubtless by the imminent election — he has chosen to expel a number of people from the Republic whose views, actions and teachings are deemed inimical to the State. Sarkozy gave the order yesterday and a couple of hours later the men were on planes back to their countries of origin. As the Times reports, the Algerian Islamist Ali Belhadad was flown back to Algiers and Almany Baradji, an imam, was sent back to Mali. The French Interior Ministry

There was an element of bafflement in the early BBC coverage this morning of the welcome news that police have identified and surrounded the suspected killer of seven people, including Jewish children, in Toulouse. To some people’s surprise, the BBC correspondent remarked in the early reports, the suspect turned out to be a Muslim, Mohammed Merah. So the entire tone of the Corporation’s coverage of the killings turns out to have been misplaced. Ever since the dreadful news that a gunman had attacked a Jewish school in Toulouse after killing three French soldiers, the overriding assumption on the part of the Corporation was that, unless the killer was merely unhinged,

How about this for a claim by Nicolas Sarkozy, made in a TV appearance yesterday? ‘Europe is no longer at the edge of the cliff.’ It’s quite some statement, so let’s hear it again: ‘Europe is no longer at the edge of the cliff.’ Of course, Sarkozy has reasons for saying it beyond mere pre-electoral braggadocio: the rates paid on Italian and Spanish 10-year bonds have generally been falling since the the beginning of the year; the euro has been making some tentative progress against other currencies; and so on. But it still constrasts heavily with much else that is being said around the eurozone. Only last week, Angela Merkel

The word is that France will be downgraded by Standard and Poor’s tonight. AFP is reporting that French officials expect France to drop to a AA+ rating, losing its treasured AAA status and increasing how much it will have to pay to borrow money. 2012 has, so far, been relatively quiet on the euro front. But expect the issue to return to centre stage over the coming weeks. There are the downgrades coming tonight – France is apparently not the only eurozone country that S&P will mark down with Austria set to lose its AAA rating too – and a coercive and chaotic Greek default seems increasingly likely. Add to

The story being briefed out of the year’s first Franco-German Summit is that President Nicolas Sarkozy won the backing of Chancellor Angela Merkel for a tax on financial transactions, a levy that the British government objects to and that Ernst and Young say would leave a €116bn hole in Europe’s public finances. But before the City begins building barricades and the PM puts on his bulldog mask, it is worth taking another look at the news from Berlin. For no sooner had the agreement been announced than the tax was rejected by Chancellor Merkel’s junior coalition partner, the pro-business Free Democrats, who say they will only back a Europe-wide tax

The relationship between Turkey and France — which started with the alliance between Francis I and Suleiman the Magnificent — is in precarious territory following the French Parliament’s decision to ban denial of the Armenian Genocide. Turkey’s moderate Islamist government has taken as hard a line on the issue as previous Kemalist governments did, and has announced, in response to the French move, that Turkey would halt ‘all political consultations, joint military activities and manoeuvres.’ Not content with a formal rebuke, Turkish Prime Minister Recep Tayyip Erdogan has sought to make the conflict personal; claiming (falsely) that Sarkozy’s father served in Algeria in the 1940s and would have direct knowledge