Incoming French president signals budget cuts, handouts to banks

by KUMARAN IRA and ALEX LANTEIR

After winning the French presidential election on Sunday, the Socialist Party’s (PS) François Hollande is already positioning himself to drop his limited election promises on social spending and attack the working class with deep budget cuts.

Hollande’s victory reflected a broad popular rejection of incumbent President Nicolas Sarkozy’s austerity policies and his unpopular imperialist wars. However, any hopes for change from the incoming government will be rapidly disappointed by Hollande, who is moving to carry out reactionary policies. During his campaign, Hollande vowed to slash over €100 billion in deficit spending to have a balanced budget by 2017, while making a few proposals for social measures, like increasing school subsidies and hiring more teachers.

On Tuesday, Hollande’s campaign team told Reuters that Hollande’s advisers are pressing him to use a report from France’s leading audit body, the Cour des comptes, to justify ditching his limited campaign promises and intensify social cuts.

The report is due to be released after the June 10-17 legislative election. This would allow the PS to conceal its agenda of social austerity from the voters, while it seeks to put together a government, then rapidly move on with cuts after it has assembled a parliamentary majority and formed a cabinet on the basis of deceitful promises.

According to Reuters, “aware of the political risk of angering left-wing voters, Hollande’s advisors say he must act within two months of taking office on May 15, allowing the Socialists to point the finger at Sarkozy’s outgoing government. Any announcement would likely be after the June 10 and 17 parliamentary elections, essential for Hollande to gain a working majority for legislation.”

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