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Velociryx
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of Candle'Bre
Apr 1999 time: 05:26
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Hey, I agree with you....national interest comes first, and that's just the way the game is played....which is why the EU is about as good as its going to get....no nation is going to give up its national soveriegnty, especially when Chirac is strutting and crowing around like he's THE voice of the EU.
But....the agreement was signed by all the member states....if they're not gonna live up to it....that says something important, I think, and it sends a strong message to the states waiting in the wings to join.
Perhaps, rather than simply shredding the agreement, France could do a bit to diminish its welfare state to bring the budget back into balance. Political suicide, I know, and nobody wants to give up their gravy, so of course, it won't happen, but it would be the fiscally responsible answer.
-=Vel=-
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el freako
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Bristol, European Union
Oct 1999 time: 05:26
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quote: Originally posted by DuncanK
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source? |
OECD - used OECD in figures 2002 for shares of agriculture in GDP and employment in 2000.
Used latest estimates of GDP at PPPs in 2000 and employment in 2000, France had 101% of US level, Luxembourg had 109% (Denmark had 100%).
Last edited by el freako on 11-03-2003 at 04:00
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Spiffor
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CPA - Evil Clone brigade
Nov 2001 time: 06:26
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French Commie Disclaimer : I am a Communist from France, and as such, I oppose my incompetent president about everything except Iraq. My views do not reflect the views of the French people as a whole in any way
Chirac is probably the most terrible president France has ever had under the 5th Republic. He didn't hesitate to betray his people, his country, his European neighbours, and the Global Community.
Chirac's program during April 2002's elections supposed an annual growth of 3% in the period 2002-2007. Of course such a figure belonged to a fantasy world, but nobody dared to rebunk it, because it served every party's interests.
One of the "great" promises of Chirac was to reduce the income tax by 33% in 5 years, starting by a 5% reduction immediately. He didn't promise any reduction of our expanses, of course. At the very same time, he promised to the EU he'll have a 0% deficit in 2007 as per the Stability and Growth Agreement .
As unbelievable as it sounds, he followed this stupid promise, and French income tax was 5% lower.
Also, Chirac has begun to raise the military budget, and the police / justice budget for the sake of fighting against petty crime (big topic during the campaign).
Thus, France has higher expanses, and lower income. More precisely, French 2002 budget was intended to be :
— Income : 233,6 billions €
— Expanses : 266 billions €, including about 70 billions for the military. Highest expenditure was the Public Education.
— Sold : - 30,438 billions €, i.e. 1,4% of deficit. Naturally, the official budget as voted by the Assemblée Nationale thought a 2,75% growth would be realistic 
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Spiffor
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CPA - Evil Clone brigade
Nov 2001 time: 06:26
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Also, please note the welfare system is mostly separated from the State, and isn't paid through taxes like the State's budget. Welfare system is closely linked to emplyedship, and gets most of its resources from "social cotisations" paid by the employer and the employee.
Welfare system redistributes about 20% of the French GNP, and the State redistribute about the same part, for a grand total of ~ 40% of the GNP passing through the administration at some point.
I don't know if EU's evaluations take welfare's deficit into account or not. Currently, the government is trying to reduce any it of "useless" expanse off the welfare system. As such, the government reduces direct transfers to old people helping them being autonomous (State paid), reduces and intends to destroy the free healthcare for the poorest (State paid), and many other despicable things. 
In this perspective, the war with Iraq is aa blessing for the government, because nearly everybody supports Chirac on Iraq, and there is almost no struggle against the insensitive and absurd cuts exerted by the gov.
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HershOstropoler
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quote: Originally posted by Oerdin
Having lower taxes is not the same as having subsidy...
I'm not sure but I think there was even a WTO ruling that lower taxes were not a subsidy as long as the tax rate is the same for everyone. For example it would be illegal to give a tax break just to exporters of cheese but it would be fine to have a lower tax rate for every company which made cheese. |
Yes, only special tax breaks count as subsidies for WTO purposes; _how_ special is the battlefield for lawyers and economists.
From an economic point of view, even sectoral tax breaks are subsidies. So if there were say a 30 % income tax in general, but a 15 % tax on "farm income", it would be the same as taxing it at 30 % and giving the difference as a government handout.
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