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France: Political Futures. What kind of Welfare State?. France has a mediocre record for distributing resources across classes and regions Elites dominate Paris dominates Emergence of long term unemployment. Concentration of wealth Is inequality of wealth bad? How much is too much?
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What kind of Welfare State? • France has a mediocre record for distributing resources across classes and regions • Elites dominate • Paris dominates • Emergence of long term unemployment
Concentration of wealth • Is inequality of wealth bad? • How much is too much? • Distribution of taxes: • share of indirect taxes – such as the VAT and excise taxes- remains higher in France than in other industrialized countries • Indirect taxes • drive up prices but • weigh more heavily on the poor. • Most effective in the distribution of social transfers • Relatively low poverty rates • High level of quality medical services and public services
What kind of Welfare State? • Concentration of wealth • Is inequality of wealth bad? • How much is too much? • Distribution of taxes: • share of indirect taxes – such as the VAT and excise taxes- remains higher in France than in other industrialized countries • Indirect taxes • drive up prices but • weigh more heavily on the poor. • Effective in the distribution of social transfers • Relatively low poverty rates • High level of quality medical services and public services
Regulative Policy & Nationalization • Government-operated business enterprises • Railroads; almost all energy production; and much of the telecommunication; most air and maritime transport; most of the aeronautic industry; 85 percent of bank deposits; 40 percent of insurance premiums; one-third of the auto industry, and one-third of the housing industry • Deregulation of the economy • Other areas of regulation • Environment • immigration
Outlook: France and the New Architecture of Europe • Concerns that dominated French politics at inception of Fifth Republic have changed dramatically. • Cold War issues have faded into background • Political cleavages based on new conflicts are emerging • Class conflict • Immigration • Loss of sovereignty to EEU • Rejection of the European Constitutional Treaty
Concern increasing over French identity • expanding European Union • an interdependent world