Letter From Paris: Greece Given Four Month Debt Deal Extension … But Then What?

Nicole Prévost Logan

Nicole Prévost Logan

During the last week of February 2015, intense negotiations took place between the Greek government and the three members of the “Troika” – the International Monetary Fund (IMF), the Central European Bank (CEB) and the Eurozone.  On Feb. 27, the Bundestag, by a massive majority, approved the four month extension of aid to Greece.

It looked very much like a “déjà vu”scenario: Greece deep in debt, Greece kept alive thanks to several rounds of loans, Greece repeating its promises to curb public spending, and put a stop to fraud, corruption and tax avoidance.  The creditors, however, wanted to give the new government of Alexis Tsipras. a chance to prove itself.  The objective was to strike a compromise between austerity reforms and measures granting some respite to the most vulnerable segment of the population.  The Greek government had five days left before running out of money.

Greek President Alexis Tsipras

Greek Prime Minister Alexis Tsipras

Greece joined the Eurozone on Jan. 1, 2001.  Before 2000, the Greek deficit was about 13 percent of the Gross Domestic Product (GDP.)  By some miracle, in order to meet the criteria for joining the European Union (EU), the deficit was brought down to 3 percent, or more precisely to 3.07 percent.  Eurostat, the statistical office of the EU, the Organization for Economic Co-operation and Development (OECD) and other organizations, pondered over the figures.  The situation was confusing, especially after the Goldman Sachs experts helped Greece with some “creative accounting” by deducting currency swaps and derivatives amounting to 2.8 billion from the calculation of the deficit.

Before 2012, Greece’s creditors were mostly private banks, such as the Société Générale in France.  In March of that year, the banks agreed to cancel 70 percent of their loan or 107 billion.  In 2010 and 2012, the “Troika” granted two rounds of loans, amounting respectively to 110 and 141 billion.  Germany supports 30 percent of the Greek loan, France 23 percent (or 40 billion) and Italy 20 percent.  The participation of the Eurozone members is proportional to the size of their population.  The loans’s maturity is 30 years, 10 percent of the loan carries zero interest and the remainder has interest as low as 2 percent in 2015.  It is important to note these facts in order to counter a lot of disinformation available on the internet.

The discussions, held in Brussels, went well until the disastrous final press conference when the new Greek minister of finances Yanis Varoujakis posturing as a cool Bruce Willis, (to use the Le Monde expression) first demanded that the “Troika” change its name and then asked for a “restructuring” of the debt.  His tour of European capitals, ending in Berlin (where he should have started) was not much appreciated by the German Minister of Finance Wolfgang Schauble, who commented, “We agreed not to agree.”  Varoujakis retorted, “We did not even agree not to agree.”

At a time when refugees and migrants try desperately to reach Europe, the immigration policy of the Tsipras’s recently-elected Syriza party is quite unsettling.  Their plan calls for the retention centers, where refugees and migrants have been held until now, to be turned into “open centers;” to grant citizenship to 150,000 second generation children born in Greece; and to provide housing, schooling and medical care.  How are these programs going to be financed?  The wall built to protect the border between Turkey and Greece fell into disrepair after recent floods.  Maintaining this wall is not a priority announced the government.

There is pretty much a consensus about Greece’s inability to ever pay back its debt.  The creation of the European Funds of Stability and Finances in 2013 to “mutualize” the debt will help Europe absorb the Greek default with more serenity.

But it is far from a done deal.  In four months, before your know it, there will be fierce opposition to write off the debt.  Countries like Portugal or Spain are struggling through austerity and are are not about to continue bailing out Greece.

Nicole Prévost Logan

Nicole Prévost Logan

About the author: Nicole Prévost Logan divides her time between Essex and Paris, spending summers in the former and winters in the latter.  She writes a regular column for us from her Paris home where her topics will include politics, economy, social unrest — mostly in France — but also in other European countries.  She also covers a variety of art exhibits and the performing arts in Europe.  Logan is the author of ‘Forever on the Road: A Franco-American Family’s Thirty Years in the Foreign Service,’ an autobiography of her life as the wife of an overseas diplomat, who lived in 10 foreign countries on three continents.  Her experiences during her foreign service life included being in Lebanon when civil war erupted, excavating a medieval city in Moscow and spending a week under house arrest in Guinea.

Letter from Paris: ‘Loi Macron’ Indicates a Sea Change in French Politics

Nicole Prévost Logan

Nicole Prévost Logan

In January 2015, in a forceful declaration, French president François Hollande officially announced a break with the Socialist program, which had been the basis of his 2012 presidential campaign.  It was a sharp turn toward a more liberal, market-oriented policy.  The Loi Macron, named after the young (33-year-old) Minister of Economy Emmanuel Macron, was to embody the new trend.

Emmanuel Macron

Emmanuel Macron

Expecting that the law would not pass, the government decided to use a joker – the article 49.3.  It was a gamble since, in the event that the motion de censure (vote of no confidence) of the opposition succeeded, the government of Manuel Valls would be disavowed and fall.  But the motion de censure received only 234 votes when it needed the absolute majority of 289.  The law passed.

The article 49.3 is included in the constitution of the Fifth Republic.  It allows the government to act in force to push a text through the Parliament without the need of a vote. It is a powerful but dangerous device.  It has been used 82 times since 1958.

The last time was in 2006 when Dominique de Villepin, under the presidency of Jacques Chirac, tried to promote the Contrat Premiere Embauche, or CPE (first hiring contract). The students demonstrated in the streets.  Shortly thereafter the CPE received national funerals.  The champion of article 49.3 was Michel Rocard who in the late 1980s used it 28 times.

After 200 hours of consultations and 1,500 amendments granted by the government, it looked as though each article had been accepted separately.  And yet, by the time of the final vote on Feb. 17, the far right (Front National), the far left (Front de Gauche), most of the right (UMP), and the 40 Frondeurs, or splinter group from within the Socialist party, joined in an alliance to put road blocks to stop the government’s proposal. Manuel Valls and Emmanuel Macron made their concluding speeches among jeers and interruptions.  On the face of many deputies could be seen a rather despicable sarcasm.

In fact, the manoeuvre of the government deserves to be applauded since, to push a text in force, was the only way for the Executive to succeed.  The Loi Macron reperesents an enormous task attempting to reform the fabric of French society.  It meant dismantling the century-old system of privileges and protected niches enjoyed by whole segments of the population, including the five million civil servants, known as notaires — in France, notaires are a specific type of French attorneys overseeing all legal transaction while collecting taxes on behalf of the government, doctors, veterinarians, taxi drivers, auction houses officials, etc.

All the professions are regulated and benefit from a a special satus.  The right to work on Sundays, and allowing intercities busses were hard-won victories.  Only indirectly, the Loi Macron dealt with unemployment and ways to jump-start the economy.

The law is insufficient and has its defects, but is a step in the right direction. It represents a real effort to bring changes and to satisfy Brussels. Angela Merkel, in Paris for more discussions about the Ukraine, expressed her satisfaction.

Nicole Prévost Logan

Nicole Prévost Logan

About the author: Nicole Prévost Logan divides her time between Essex and Paris, spending summers in the former and winters in the latter.  She writes a regular column for us from her Paris home where her topics will include politics, economy, social unrest — mostly in France — but also in other European countries.  She also covers a variety of art exhibits and the performing arts in Europe.  Logan is the author of ‘Forever on the Road: A Franco-American Family’s Thirty Years in the Foreign Service,’ an autobiography of her life as the wife of an overseas diplomat, who lived in 10 foreign countries on three continents.  Her experiences during her foreign service life included being in Lebanon when civil war erupted, excavating a medieval city in Moscow and spending a week under house arrest in Guinea.

Letter from Paris: Minsk 2 – Another Truce for Ukraine … Maybe

From left to right, Vladimir Putin, Angela Merkel, François Hollande and Petroshenko.

From left to right, Vladimir Putin, Angela Merkel, François Hollande and Petro Porosnhenko. Photo credit EPA/Maxim Shipenkov.

After a 16-hour long marathon of negotiations on Feb. 11, and a great deal of suspense, Angela Merkel and François Hollande wrenched out a hard-won agreement for a cease-fire in Ukraine from Petro Porosnhenko and Vladimir Putin starting on Saturday, Feb. 14 at midnight.  All parties to the agreement were extremely cautious and hoped that “Minsk 2” would last longer than “Minsk 1” signed in September 2014.

More than 5,500 people have died in the conflict during the past 10 months, which makes it the deadliest in Europe since World War II.  There was a sense of relief that the agreement went through and thus a disaster had been avoided.  In the morning, Putin joked that he had had better nights but felt satisfied.

To continue the negotiations rather than slamming more sanctions on Putin, as some Washington pundits advocate, was the objective of Minsk 2.  Sanctions have a cost for Europe (for example, the Russian government retaliated to earlier sanctions by blocking the import of produce from Western Europe.)  More dangerously, they exacerbate the nationalism of Putin and enhance his popularity in Russia.

In the face of a threatening strategy of Daesh* making well planned inroads to destabilise Europe by recent acts of terrorism, Russia and the European Union (EU) have a common enemy.  For decades, the extremist Moslem opposition in Chechnya and Central Asia has been a great fear for the Russian government..

The talks in Minsk started in a polar atmosphere.  Throughout the night, Petro Poroshenko’s and Vladimir Putin’s teams moved like a choreographed ballet.  Early in the morning, Putin left the room, slamming the door, only to reappear a few minutes later. The Franco-German duo is to be credited with an unflappable tenacity to reach an agreement.  The two worked perfectly together.  Merkel needed Hollande since she wants to avoid making foreign policy decisions alone and prefers,“Leading from the center,” to use a formula coined by the German Minister of Defence Ursula von der Leyen.

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Minsk 2 includes modified provisions to make the process move forward.  The buffer zone – cleared from all heavy armaments – has been widened from 30 km to 70 kms.  The European Council for Stability and Security will be monitoring the application of the agreement.  Putin expressed his demands for the autonomy of the Luhansk and Donestk regions..

The EU widely considers that Ukraine is both a corrupt and failed state.  It cannot afford to help it financially nor envisages its adhesion to the EU any time soon.  Kiev does not want to lose the industrial and mining Donbas region, but its action is disorganized.  For many months, Putin has claimed that he never intervened in the conflict taking place in Eastern Ukraine.

One wonders whether he really controls the Russian separatists, so different from the sophisticated Maidan crowd.  The Donbass miners and blue collar workers are products of massive transfers of population forced by the Soviets at the time of the German offensive to compensate for the relocation of highly skilled workers to the Ural Mountains.  Another headache for Putin is the presence among the Russian separatists of clans whose leaders have political ambitions .

It is hard to understand Putin’s strategy.  Obviously he does not want NATO to choke him nor nuclear misssiles to be installed in the area.  He does not have the means to support the Donbas.  His priority should most likely be to allow a corridor from Rostov on Don, through Mariopol on the Sea of Azov and then leading to the Crimea.  At present his only access to the Crimea is through the Straits of Kerch, which is some distance away.

*The new nickname for ISIS widely used in France, Australia and some other countries because ISIS supposedly dislikes it intensely — it is a loose acronym of the Arabic description of ISIS, which does not acknowledge any statehood for the organization but rather can be roughly translated as, “One who crushes something underfoot,” or, “One who sows discord.”

Nicole Prévost Logan

Nicole Prévost Logan

About the author: Nicole Prévost Logan divides her time between Essex and Paris, spending summers in the former and winters in the latter.  She writes a regular column for us from her Paris home where her topics will include politics, economy, social unrest — mostly in France — but also in other European countries.  She also covers a variety of art exhibits and the performing arts in Europe.  Logan is the author of ‘Forever on the Road: A Franco-American Family’s Thirty Years in the Foreign Service,’ an autobiography of her life as the wife of an overseas diplomat, who lived in 10 foreign countries on three continents.  Her experiences during her foreign service life included being in Lebanon when civil war erupted, excavating a medieval city in Moscow and spending a week under house arrest in Guinea.

Letter from Paris: Patrick Modiano receives 2014 Nobel Prize for Literature

Nobel_prize_for_Literature_2014

…”all those wasted years during which one did not pay enough attention to trees, to flowers”…) says the main character  in Modiano’s latest novel ‘Pour que tu ne te perdes pas dans le quartier’ (which translates roughly as, “To avoid getting yourself lost in the neighborhood”)

France had the distinctive honor of receiving two Nobel prizes in 2014:   Jean Tirole was the recipient of the Prize for Economics for his work on the financial crisis and the banking system while Patrick Modiano received the Prize for Literature.  He will join an illustrious pantheon of writers from Gunter Grass (Germany) ), Toni Morrison and Nadine Gordimer (South Africa), Wole Soyinka (Nigeria), Gabriel Garcia Marques (Columbia) and Alexander Solzhenitsyn (Soviet Union)  to Albert Camus (France) or Ernest Hemingway (USA).  Modiano is the 16th laureate from France, giving that country the largest number since beginning of the Nobel awards in 1900.

The press release issued by the Swedish Academy of Sciences selected the French writer, “For the art of memory with which he has evoked the most ungraspable human destinies and uncovered the life-world of the Occupation.” The prize was a recognition of his abundant literary production (30 novels)  centered on the protagonists’ search of their own past, in the urban setting of Paris, going back to World War II.

He writes like a sleep walker, plodding through a mysterious, sometimes disjointed sequence of events looking for his lost childhood when he was tossed around from one home to another.  Since his first novel, ‘La Place de l’Etoile,’ published in 1968, he has created a world where autobiographic notes are interwoven with the “bad dream” of the Occupation.

Modiano is a tall (6′ 6” ) man of 69 with a kind face and fluttering hands as he speaks.  During a 45-minute acceptance speech in Stockholm, his modest personality must have made him endearing to the distinguished audience, particularly when he dedicated his award to his Swedish grandson.

A writer, he said, is usually a poor speaker, who leaves his sentences unfinished, because he is used to editing his text over and over again.

He explained that he belonged to a generation when children were not allowed to speak up and, if they were given a chance to speak, they expected to be interrupted at any time.

During an interview he gave in his study, surrounded by thousands of books, he asked, “Why would I write another book when so many have been already written?”  Then he added,  “It is probably at the sight of his own bookcases that a discouraged Scott Fitzgerald took up drinking.”

He claims, with incredible modesty, that “It is with bad poets that one obtains prose writers.”

According to Alice Kaplan, head of the French department at Yale University, Modiano can be labelled as the Marcel Proust of modern times.

Claire Duvarrieux, head of the ‘Books’ department of the daily newspaper, Liberation, describes the works of Modiano as a collective memory of France during the war, the German Occupation, collaboration, the persecution of the Jews and finally, the war in Algeria.

With Louis Malle, he co-wrote the scenario of Lacombe Lucien in 1974, one of the best French “New Wave” films.

Nicole Prévost Logan

Nicole Prévost Logan

About the author: Nicole Prévost Logan divides her time between Essex and Paris, spending summers in the former and winters in the latter. She writes a regular column for us from her Paris home where her topics will include politics, economy, social unrest — mostly in France — but also in other European countries. She also covers a variety of art exhibits and the performing arts in Europe. Logan is the author of ‘Forever on the Road: A Franco-American Family’s Thirty Years in the Foreign Service,’ an autobiography of her life as the wife of an overseas diplomat, who lived in 10 foreign countries on three continents. Her experiences during her foreign service life included being in Lebanon when civil war erupted, excavating a medieval city in Moscow and spending a week under house arrest in Guinea.

Letter From Paris: Marcel Duchamp at the Pompidou Center

Marcel Duchamp i(1887-1965) is well known in America. Most people have heard of his readymades like the famous (or infamous) Fontaine, which is, in fact, a public urinal. Stiglitz immortilized the original in a 1917 photograph before it disappeared for ever. The bicycle wheel set on a kitchen stool is a familiar sight for MOMA vistors.

Nude descending a staircase No. 2

Nude going down a staircase No. 2

Since his first trip to the US in 1915, the artist made multiple visits to that country, avoiding the two World Wars. He acquired American nationality in 1955. It was at the 1913 Armory Show that his cubist painting ‘Nu Descendant un escalier No. 2′ (Nude going down a staircase No. 2) became a huge success.

Some critics have labelled Marcel Duchamp as the creator of modern art while others say he destroyed it when he advocated “non-retinal” painting. Volumes have been written about him. In an amazingly short time – since he abandoned art for chess at age 36 – he was able not only to produce art, but also to integrate into it the latest discoveries of science and modern technology.

The Marcel Duchamp exhibit at the Pompidou Center just closed its doors after several successful months. It was a monographic approach consisting of about 100 paintings and drawings little known in France (most of them are part of the Louise and Walter Arensberg collection at the Philadelphia Museum of Art) covering the 1912 to 1923 period and leading to his main creation, ‘Le Grand Verre.’

Born in Normandy, Duchamp belonged to a talented family of six children. The mother was a distant figure, which may explain his alienation from women. ‘Sonate,’ 1911, represents the three sisters playing musical instruments. The mother stands stern and erect . Strangely enough she seems to be enjoying the concert, although she is deaf.

He had a deadpan sort of humor and provocation was his tool. He enjoyed playing tricks on the Regardeurs (viewers), giving wrong titles to his works. He relished plays on words, for example, he called himself Rose Selavy (Eros – that’s life) in the photograph Man Ray took of him. To put a moustache and a goatie on Mona Lisa was a virtual iconoclastic gesture and he made it even more outrageous by giving it the title of LHOOQ (if the letters are pronounced in French the meaning is shockingly vulgar) .

Duchamp joined his two brothers Jacques Villon and Raymond-Duchamp in the Puteaux group of Cubists. ‘Dulcinea’ and the ‘Joueurs d’échecs’ are among his superb cubist paintings. Borrowing the technique of chronophotography and cinema, he introduced time and movement in ‘Jeune Homme Triste dans Un Train 1911-12,’ where the real accomplishment was to show a person in a train in motion while also suggesting his sad mood.

La Mariée mise a nu par ses célibataires,’ meme (also called Le Grand Verre) was his major work. It consists of two free-standing glass panels. In the lower register, nine Moules Maliques* (an officer, a gendarme, a priest, etc) stand beside a chocolate-crushing machine, which rotates non-stop. By means of sexually-related devices, gas travels up toward the mariée, who is hanging limply at the top, having gone from the virgin to the bride stage. The work alludes to the universal themes of erotic love and the inaccessible woman.

* I am not even attempting to translate these nonsensical words!

Nicole Prévost Logan

Nicole Prévost Logan

 

About the author: Nicole Prévost Logan divides her time between Essex and Paris, spending summers in the former and winters in the latter. She writes a regular column for us from her Paris home where her topics will include politics, economy, social unrest — mostly in France — but also in other European countries. She also covers a variety of art exhibits and the performing arts in Europe. Logan is the author of ‘Forever on the Road: A Franco-American Family’s Thirty Years in the Foreign Service,’ an autobiography of her life as the wife of an overseas diplomat, who lived in 10 foreign countries on three continents. Her experiences during her foreign service life included being in Lebanon when civil war erupted, excavating a medieval city in Moscow and spending a week under house arrest in Guinea.