
Christiane Lagarde has
presented what is supposed to be the
second chapter of the government's economic reform program, the first chapter being the TEPA tax cut package that was passed last year. Whereas Sarkozy was much in evidence in the passage of the TEPA, including a personal intervention when the Conseil Constitutionnel ruled part of the mortgage rebate unconstitutional, he hasn't had much to say about the
Lagarde plan, which barely came up in his news conference the other day. To be sure, he has discussed pieces of the plan, such as permitting
retailers greater latitude to negotiate discounts with their suppliers. But the whole has not been touted as a single package bearing the presidential seal of approval. This isn't simply because the president is less in evidence generally these days. It seems to me rather a calculated move, since many of the details of the Lagarde plan are hardly the stuff of rousing populist appeals: reducing the time a purchaser is allowed to delay payment of an invoice may be an important reform, but it isn't going to set a stadium on fire. It's easier to denounce May '68 or assert that schoolteachers will never replace priests. When even a member of the prime minister's Conseil d'Analyse Économique calls the reform "
a policy of small steps," it is easy to understand why the president may think this isn't his road back to popularity.
In addition, it should be noted that the Lagarde plan strikes at certain key components of the UMP coalition, especially small retail businessmen, who must now face intensified competition from big chains, pay bills promptly, etc. "Corporatist" resistance scuttled the Attali report and may yet scuttle parts of the Lagarde plan. Sarkozy has left himself ample room to cut loose any portion of the proposal that encounters too much opposition. But if the president is looking for advice, I'll give him some
gratis: he could revive his plan to allow more taxis in Paris by noting that if there were more legal taxis, there would be fewer illegal ones, and sexual predators like the one who allegedly killed the young Swedish tourist would be deprived of an instrument. A demagogic argument, I know--but recidivism and liberalism being two of Sarko's subjects of predilection, here is an opportunity to combine them. Attali meets Dati, one might say.