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ECONOMY

French embassy in UK sparks diplomatic row

France’s embassy in the UK hit back this week against criticism from a British newspaper that the country is becoming “a tragedy” and in doing so has taken a swipe at the UK, the NHS and its transport system.

French embassy in UK sparks diplomatic row
The French embassy in London has sparked a diplomatic row after it responded to more French bashing from the Anglo media this week. Photos: Awsheffield/TomGodber/flickr

France’s embassy in London has become embroiled in a diplomatic row after it was forced to defend the country against the latest round of French-bashing from the Anglo media, by taking a swipe at the UK.

The embassy in London was aggrieved by a piece by City AM journalist Allister Heath titled “France’s failed socialist experiment is turning into a tragedy” in which in, now age-old fashion, he predicts France’s economic demise and the exodus of all its bright stars.

But France’s London-based diplomats, still smarting from a recent provocative French-bashing article in Newsweek, decided to bash back, labelling Heath's article "an ideological mix of prejudice and error".

In an article on its website they list 10 reasons why City AM and Heath have got it completely wrong. But in doing so, they provoked the wrath of British politicians by criticizing the state of the NHS and the UK transport system.

“Years of under-investment forced the Blair government to allocate large sums of money to the NHS, and the current government has had to ring-fence funding for this ailing institution,” the article states.

“The French system, by comparison, which is also almost entirely free of charge, came top of 191 countries in the World Health Organization’s rankings for overall healthcare (source: World Health Organization). France also provides twice as many hospital beds per citizen as the UK.

“Similar success exists in infrastructure, from high-speed rail to energy. France has always sought to achieve greater efficiency and will continue to do so in spite of future budget cuts. Clearly, however, when you live in France – from health to infrastructure and from energy costs to transport – you get bang for your euro.”

The embassy also defended France’s tax system compared to that of the UK’s.

“The French and UK tax systems are based on different traditions. For one thing, the French tax system is fundamentally more redistributive,” the article writes.

To read the full comeback from the French embassy, click on the link below.

TEN reasons why France is not 'turning into a tragedy'

However the article, perhaps predictably, ended up provoking several British politicians to respond.

Health Secretary Jeremy Hunt was quoted in the Daily Telegraph as saying: "We may face stiff competition from the French on cheese & wine, but there's a reason the NHS makes us more proud to be British than any other institution."

And speaking to the same newspaper Dominic Raab, a Conservative MP, said: "The histrionic reaction of the French Ambassador only magnifies the increasing sense of Gallic insecurity commentators talk about.

"There's a reason London is now the sixth largest French city, and that's because an increasing number of French workers recognize their socialist experiment has failed. "

Heath was the latest journalist to twist the knife into France stating: "FRANCE is still France – and that, tragically, is why that great country and its wonderful people are doomed to decline further this year."

His piece echoed many sentiments expressed by Newsweek journalist Janine di Giovanni, who was lambasted by French media last week for her piece titled: "The Fall of France"

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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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