Thursday, July 4, 2013

Sarkozy's Campaign Accounts Rejected by Conseil Constitutionnel

Sarkozy's books don't add up, the Conseil Constitutionnel has confirmed. With this rejection, the UMP now faces bankruptcy. Sarkozy has resigned from the CC in order to reclaim his "freedom of speech."

I recall that the FN almost went bankrupt after the election of 2007, and look where they are now. Perhaps this is the beginning of the comeback.


typy bukmacherskie said...

Interesting blog and article. I looked in here more often.

bernard said...

Let's remain calm and composed.

It's not that the accounts don't add up, it's that they add up to too much money spent once some expenditures both from UMP and from the Presidency have been reclassified as presidential campaign expenditures (amusingly, Balladur's accounts in 1995 truly did not add up...something everybody including Van Ruymbecke had guessed at the time but only got witness confirmation some 20 years later in the true spirit of "courageux mais pas téméraire"). Sarkozy is only accused of having breached the upper cap on presidential campaign spending (around 21.5 million Euros as I recall).

As a result UMP cannot claim the close to 11 million Euros it should have received as public funding due to Sarkozy's excellent (though insufficient...) score in the election. UMP is already in debt for 55 million Euros and will need to find more funds as a result. As for being bankrupt, UMP will be so if and only if the banks which have made loans refuse to roll them over (fat chance if you ask me). What will happen is that the banks which have already introduced conditionality to their lending will likely tighten the conditionality (IMF anyone?). That conditionality is apparently a credible expenditure reduction plan over the coming 5 years. This provides our dear Messrs Copé and Co, who are braying "matin, midi et soir" about the absolute necessity to reduce public expenditure radically, with a superb opportunity to illustrate by cutting radically their party's expenditure. What goes around comes around, I guess.

It is in the nature of politics that parties are sometime in office and sometimes in opposition: they have different financial means at different times and this is a situation that the PS has known on several occasions, and survived very well, thank you.

Politically, this provides Sarkozy with a clear incentive to step back into politics. This also provides numerous UMP politicians with an incentive to distance themselves from UMP and maybe create their own little parties to escape the financial morass in which UMP finds itself.

Anonymous said...

Personnally, I only hope that Sarko reclaiming his "freedom of speech" doesn't mean we shall see his ugly mug morning, afternoon and evening on the television screen, like in the bad old days of 2007 / 2008.