A war of words has broken out between the leader of the far-right Front National, Marine Le Pen, and the equally forthright head of the Medef employers' group, Laurence Parisot.

"/> A war of words has broken out between the leader of the far-right Front National, Marine Le Pen, and the equally forthright head of the Medef employers' group, Laurence Parisot.

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ECONOMY

Marine Le Pen slams union leader

A war of words has broken out between the leader of the far-right Front National, Marine Le Pen, and the equally forthright head of the Medef employers' group, Laurence Parisot.

Marine Le Pen slams union leader

Parisot has been a consistent critic of the Front National’s economic policies, claiming that they will damage France.

In a recently published book, Parisot characterized Le Pen’s ideas and “hatred” as “dangerous”. She is scathing about the party’s economic policies, particularly its demand for France to leave the euro.

In an interview with weekly magazine Paris Match she said the book “has the aim of stopping Marine Le Pen getting through to the second round of voting in the presidential election”.

In the French electoral system, the field of candidates is narrowed down to the two front-runners who then face each other in a final vote. In 2002, the former leader of the Front National, Le Pen’s father Jean-Marie, managed to beat the Socialist candidate, Lionel Jospin, to come face-to-face with Jacques Chirac in the second round of voting.

“If there was the misfortune of this happening,” wrote Parisot, “I would organize a special meeting of the executive council of Medef. I don’t doubt that, just as in 2002, it would call on voters to block the Front National.”

Weekly magazine L’Express has seen a letter sent by Le Pen to the 45 members of Medef’s executive committee. 

In it the Front National leader questions whether Medef is sticking to “the principles that Medef claims…of no interference in the democratic electoral debate and no voting guidance.”

“I am writing to you directly to know if you support this declaration made in your name and if you associate yourselves with this clear declaration of war against a political party,” she wrote.

Marine Le Pen claims the Medef leader’s book contains “an impressive number of errors, lies and nonsense”. She has also invited the Medef leader to have a public debate on the issues. 

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ECONOMY

How is Denmark’s economy handling inflation and rate rises?

Denmark's economy is now expected to avoid a recession in the coming years, with fewer people losing their jobs than expected, despite high levels of inflation and rising interest rates, The Danish Economic Council has said in a new report.

How is Denmark's economy handling inflation and rate rises?

The council, led by four university economics professors commonly referred to as “the wise men” or vismænd in Denmark, gave a much rosier picture of Denmark’s economy in its spring report, published on Tuesday, than it did in its autumn report last year. 

“We, like many others, are surprised by how employment continues to rise despite inflation and higher interest rates,” the chair or ‘chief wise man’,  Carl-Johan Dalgaard, said in a press release.

“A significant drop in energy prices and a very positive development in exports mean that things have gone better than feared, and as it looks now, the slowdown will therefore be more subdued than we estimated in the autumn.”

In the English summary of its report, the council noted that in the autumn, market expectations were that energy prices would remain at a high level, with “a real concern for energy supply shortages in the winter of 2022/23”.

That the slowdown has been more subdued, it continued was largely due to a significant drop in energy prices compared to the levels seen in late summer 2022, and compared to the market expectations for 2023.  

The council now expects Denmark’s GDP growth to slow to 1 percent in 2023 rather than for the economy to shrink by 0.2 percent, as it predicted in the autumn. 

In 2024, it expects the growth rate to remain the same as in 2003, with another year of 1 percent GDP growth. In its autumn report it expected weaker growth of 0.6 percent in 2024.

What is the outlook for employment? 

In the autumn, the expert group estimated that employment in Denmark would decrease by 100,000 people towards the end of the 2023, with employment in 2024  about 1 percent below the estimated structural level. 

Now, instead, it expects employment will fall by just 50,000 people by 2025.

What does the expert group’s outlook mean for interest rates and government spending? 

Denmark’s finance minister Nikolai Wammen came in for some gentle criticism, with the experts judging that “the 2023 Finance Act, which was adopted in May, should have been tighter”.  The current government’s fiscal policy, it concludes “has not contributed to countering domestic inflationary pressures”. 

The experts expect inflation to stay above 2 percent in 2023 and 2024 and not to fall below 2 percent until 2025. 

If the government decides to follow the council’s advice, the budget in 2024 will have to be at least as tight, if not tighter than that of 2023. 

“Fiscal policy in 2024 should not contribute to increasing demand pressure, rather the opposite,” they write. 

The council also questioned the evidence justifying abolishing the Great Prayer Day holiday, which Denmark’s government has claimed will permanently increase the labour supply by 8,500 full time workers. 

“The council assumes that the abolition of Great Prayer Day will have a short-term positive effect on the labour supply, while there is no evidence of a long-term effect.” 

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