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EUROPEAN UNION

French business leaders urge swift response to Brexit

Financial movers and shakers gathered in France on Saturday urged a clear and timely political response to lift the uncertainty caused by Britain's shock vote to leave the European Union.

French business leaders urge swift response to Brexit
Protestors at a pro-EU rally in London on Saturday. Photo: AFP

A raft of top business leaders and intellectuals have gathered in the southern French city of Aix-en-Provence for a three-day meeting to discuss how to react to the fallout from last week's “Brexit” vote.

Participants swiftly agreed on at least one thing — nobody is quite sure what is going to happen next, the underlying source of their worries.

Britain has not yet begun the process of disengaging itself from the European Union, with arguments raging after the country was split 52 percent to 48 percent in the referendum.

Renault-Nissan automaker giant head Carlos Ghosn said the loss of Britain in itself from the EU bloc was not so much the problem as that the uncertainties such a move would provoke.

“Worried? Yes,” said Ghosn. “Not because of Brexit but worried by the uncertainty that has engendered.”

For Ghosn, “companies, good or bad, are capable of adapting to everything. all kinds of situations.”

But with Britain's new status regarding the European Union not clear he said firms would have to live with uncertainty. “We are going to navigate as we go along,” said Ghosn, not least regarding the post-Brexit future of Nissan's factory employing 8,000 in the north east of England.

Oil giant Total's CEO Patrick Pouyanne said for his part that Brexit would “not have a direct impact” as likely sterling weakness could bring down production costs for the group's North Sea operations.

“On the other hand, Brexit will have European growth impacts on the macro-economic front and that could cause damage,” Pouyanne said.

“There is an element of more uncertainty, instability, in a world which is already facing up to a range of geopolitical difficulties, with Isis (Islamic State), Ukraine, a swathe of financial crises and now Brexit.”

US ratings agency SP Global Ratings cut its rating for the EU by one notch last Thursday citing the uncertainty created by the Brexit vote.

“The only message I would like to transmit is we have to act fast,” said Pouyanne or risk allowing uncertainty to “destroy confidence” in the whole bloc.

Politicians indicated they understand that message and its urgency.

“The first thing to do is lift the uncertainty as soon as possible so that economic actors are able to take decisions quickly, including decisions pertaining to investment and development,” French Minister of Finance Michel Sapin said Friday.

“Today,” Sapin added, I feel economic actors are demanding political decisions — perhaps a revamping of politics?”

Paris is looking to use Brexit as a chance to bolster the attractiveness of France and Prime Minister Manuel Valls gave an interview to Saturday's Le Parisien in which he set out France's stall to that end.

“We are working on means of reinforcing our attractiveness. I am thinking notably of tax policy or the status of expatriates. So I say to large international companies — Welcome to Paris ! Come and invest in France,” said Valls.

“We are the number one financial market place in the eurozone in terms of direct and indirect employment with 1.2 million jobs,” Muriel Penicaud, director general of Business France, a public body tasked with showing off France's plus points to the business world, told AFP.

The group has just published a paper highlighting reasons to do business in Paris, insisting the capital offers “a robust stock market regulatory and financial system.”

IMMIGRATION

Border centres and ‘safe’ states: The EU’s major asylum changes explained

UPDATE: The EU parliament has adopted a sweeping reform of Europe's asylum policies that will both harden border procedures and force all the bloc's 27 nations to share responsibility.

Border centres and 'safe' states: The EU's major asylum changes explained

The parliament’s main political groups overcame opposition from far-right and far-left parties to pass the new migration and asylum pact — enshrining a difficult overhaul nearly a decade in the making.

European Commission President Ursula von der Leyen hailed the vote, saying it will “secure European borders… while ensuring the protection of the fundamental rights” of migrants.

“We must be the ones to decide who comes to the European Union and under what circumstances, and not the smugglers and traffickers,” she said.

EU governments — a majority of which previously approved the pact — also welcomed its adoption.

German Chancellor Olaf Scholz and Greece’s migration minister, Dimitris Kairidis, both called it “historic”.

French President Emmanuel Macron said Europe was acting “effectively and humanely” while Italian Interior Minister Matteo Piantedosi hailed what he termed “the best possible compromise”.

But there was dissent when Hungarian Prime Minister Viktor Orban derided the reform as “another nail in the coffin of the European Union”.

“Unity is dead, secure borders are no more. Hungary will never give in to the mass migration frenzy! We need a change in Brussels in order to Stop Migration!” Orban said in a post on social media platform X.

For very different reasons, migrant charities also slammed the pact, which includes building border centres to hold asylum-seekers and sending some to outside “safe” countries.

Amnesty International said the EU was “shamefully” backing a deal “they know will lead to greater human suffering” while the Red Cross federation urged member states “to guarantee humane conditions for asylum seekers and migrants affected”.

The vote itself was initially disrupted by protesters yelling: “The pact kills — vote no!”, while dozens of demonstrators outside the parliament building in Brussels held up placards with slogans decrying the reform.

The parliament’s far-left grouping, which maintains that the reforms are incompatible with Europe’s commitment to upholding human rights, said it was a “dark day”.

It was “a pact with the devil,” said Damien Careme, a lawmaker from the Greens group.

Border centres

As well as Orban, other far-right lawmakers also opposed the passage of the 10 laws making up the pact as insufficient to stop irregular migrants they accuse of spreading insecurity and threatening to “submerge” European identity.

Marine Le Pen, the figurehead of France’s far-right National Rally, complained the changes would give “legal impunity to NGOs complicit with smugglers”.

She and her party’s leader who sits in the European Parliament, Jordan Bardella, said they would seek to overturn the reform after EU elections in June, which are tipped to boost far-right numbers in the legislature.

The pact’s measures are due to come into force in 2026, after the European Commission first sets out how it would be implemented.

New border centres would hold irregular migrants while their asylum requests are vetted. And deportations of those deemed inadmissible would be sped up.

The pact also requires EU countries to take in thousands of asylum-seekers from “frontline” states such as Italy and Greece, or — if they refuse — to provide money or other resources to the under-pressure nations.

Even ahead of Orban’s broadside, his anti-immigration government reaffirmed Hungary would not be taking in any asylum-seekers.

“This new migration pact practically gives the green light to illegal migration to Europe,” Hungary’s Foreign Minister Peter Szijjarto said before the vote, adding that Budapest “will not allow illegal migrants to set foot here in Hungary”.

‘EU solidarity’

German’s Scholz said on X that the accord stands for “solidarity among European states” and would “finally relieve the burden on those countries that are particularly hard hit”.

One measure particularly criticised by migrant charities is the sending of asylum-seekers to countries outside the EU deemed “safe”, if the migrant has sufficient ties to that country.

The pact resulted from years of arduous negotiations spurred by a massive inflow of irregular migrants in 2015, many from war-torn Syria and Afghanistan.

Under current EU rules, the arrival country bears responsibility for hosting and vetting asylum-seekers and returning those deemed inadmissible. That has put southern frontline states under pressure and fuelled far-right opposition.

A political breakthrough came in December when a weighted majority of EU countries backed the reforms — overcoming opposition from Hungary and Poland.

In parallel with the reform, the EU has been multiplying the same sort of deal it struck with Turkey in 2016 to stem migratory flows.

It has reached accords with Tunisia and, most recently, Egypt that are portrayed as broader cooperation arrangements. Many lawmakers have, however, criticised the deals.

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