Euro-confusion

There was a cynical saying in France during the Gaullist era that "the Frenchman carries his heart on the left but his wallet on the right." The results of the latest French parliamentary election show that this no longer holds true. The Frenchman has moved his wallet to the left. Lionel Jospin's Socialist Party has won power on a promise of jobs and an end to the previous government's austerity measures. The socialists have promised to create 700, 000 jobs, half of which will be in the public sector.

Ironically, such themes as jobs, the need for greater economic liberalism and the desire to recover some powers from Brussels lay behind President Jacques Chirac's successful 1995 campaign. The communists, who had a pre-arranged pact with Mr. Jospin, will probably demand their pound of flesh. They want the new government to push Brussels into relaxing the criteria for French entry into the European single currency.

This is one reason why overseas observers are predicting that the socialists' victory is certain to contribute to the growing confusion and political conflict over Europe's plans for monetary union. Mr. Jospin owes at least part of his victory to the strong showing of the National Front, which divided the vote for the right in a crucial number of constituencies, letting the left's candidate in. Traditionally in France, the president deals with foreign policy issues; the prime minister has the say on domestic and financial matters. And this could lead to friction between Mr. Chirac and Mr. Jospin.

Meanwhile, Mr. Chirac hardly needs to be told by overseas observers that he miscalculated disastrously when he called for an early election in a country which, in addition to a large budget deficit, probably has the highest rate of unemployment in Europe.

-- Hong Kong Standard