Sarko presents a Latin/Germanic choice to France

Someone tuning in to last night’s presidential debate in France might have thought Nicolas Sarkozy was running for president of Germany. Praising the economic model of France’s eastern neighbour, he continually stressed that Germany is more competitive and an easier place to do business.

Even his Socialist challenger Francois Hollande had to agree with him. “Germany in all fields is better than us,” Hollande conceded, with a tone that seemed to imply, ‘if you love it so much, why don’t you go there.’

Germany and its chancellor Angela Merkel loomed large over this debate, although she was never mentioned by name. Sarkozy continually returned to a theme of defending his close partnership with the chancellor and her austerity regime for Europe. He has been accused, both in Germany and France, of being Merkel’s poodle. “We avoided the implosion of the euro,” he spat at Hollande incredulously after he questioned the austerity strategy. “It was hard work, which was founded on the Franco-German partnership. It is irresponsible to want to question it.”

And thus the lines were drawn in precisely the way Sarkozy wanted them. “For me, the example to follow, it is that of Germany rather than that of Greece or Spain,” said the president. He stressed that it was the Socialists who have been in power in Spain during the economic crisis, and today Spain’s economy is on the verge of collapse. Contrast that, he said, with Germany where his fellow conservatives have been in power. Germany has the most successful economy in the EU. Hollande, he warned, would make France like Spain.

Anti-austerity protests shut down EU Quarter

As one of the last remaining Socialist governments in Europe collapses today, the left is taking to the streets in Brussels in what seems like a last-ditch effort to stop the massive austerity cuts to government spending taking place across Europe.

This morning I had the arduous task of trying to make my way to work through the massive union demonstrations by the European Trade Union Confederation that have closed off the EU Quarter. While some parts of the protests seemed relatively peaceful and good-natured, I could already observe danger signs. The security forces are wearing body armour, riot gear and gas masks. Youths with bandanas around their faces were everywhere, particularly on the side streets. Many of the older demonstrators are already intoxicated. I saw eggs being pelted at the windows of buildings on Rue de la Loi. Firecrackers were exploding all over the place (my suitcase got hit by one in fact!). My friend tells me a window in her office was smashed by a rock. It's going to be a fun day…

Denmark may join the euro before the summer

It might seem counter-intuitive given the ongoing tremors within Europe's common currency, but believe it or not Denmark is considering holding a referendum on joining the euro in the next few months. Though Danes rejected joining the common currency in 2000, the country's prime minister said yesterday that they may give it another shot. And poll numbers indicate that this time it could succeed.

All EU countries are required to join the euro eventually, but Denmark and the UK have an opt-out from this requirement. But, as is the case with so many EU opt-outs, Denmark is actually a pseudo-member of the eurozone. Because Denmark is in the European Exchange Rate Mechanism, its currency is pegged to the euro. So essentially, Denmark is already on the euro, it just uses different pieces of paper. But because it doesn't technically use the euro, it can't take part in eurozone decisions. And now that Angela Merkel and Nicolas Sarkozy are pushing for the creation of Eurozone decision-making body, the situation has become quite undesirable for Denmark. It will be affected by the decisions made in this new body, but it won't be able to join it. And that is why, despite the eurozone trouble, this might be exactly the right time for Denmark to join the euro.