SHARE
COPY LINK

ECONOMY

French PM skips MPs’ vote to save key reforms

Fearing defeat in parliament on a raft of key economic reforms, the French PM Manuel Valls took drastic action on Tuesday and pushed through the bill without the normal vote by MPs. The move could spark a vote of confidence in the government.

French PM skips MPs' vote to save key reforms
French Prime Minister Manuel Valls speaks in the national assembly. Photo: AFP

"I won't take any risks," Manuel Valls told deputies, as the government struggled to win a parliamentary majority over the hotly contested reforms.

"This legislation is important, even essential, to relaunch growth, create employment, to overcome certain blockages in our economy," he said.

"I won't take a risk with a bill like this which I consider essential for our economy," Valls told deputies.

Deputies had been set to vote on the highly divisive package of measures, including the extension of Sunday shopping drawn up by the country's energetic and youthful banker-turned-economy minister Emmanuel Macron, who says he has received death threats over the reforms.

But with so many Socialist MPs in the majority opposing the bill, because they see it as too pro-business, Valls decided he couldn't take the risk of the government suffering an embarrassing defeat.

He decided to use the clause known as "49-3" which allows the government to pass a bill, without a parliamentary vote.

The bill is considered as having passed unless the parliament votes through a motion of no-confidence in the government — which analysts see as highly unlikely.

The right-wing opposition UMP party has already vowed to table a vote of no-confidence but political analysts say it is highly unlikely that the rebel Socialists will choose to bring down the government and risk their own seats over the reforms.

Initially the bill had been expected to pass despite the opposition, but as the day went on it became clear that the government may not have the support they need.

According to several MPs who spoke to AFP on Tuesday, Valls had feared the reforms will not get through a parliamentary vote, with numerous left wing rebels set to vote against it.

"I am not being dramatic. As I speak now, the bill will not pass. It would be a considerable blow," Valls reportedly told a group of MPs behind closed doors.

In rowdy scenes in parliament, the country's energetic and youthful banker-turned-economy minister Emmanuel Macron passionately defended his bill, which he sees as vital to energise the eurozone's second-largest economy.

A major plank of the reform package is to extend the number of Sundays that shops are allowed to open from a maximum of five per year to 12.

In certain areas classed as "international tourist zones" — such as in Paris the Champs Elysees, the Saint-Germain area and the Boulevard Haussmann where most of the capital's department stores are based — shops would be able to open every Sunday.

Shops in these zones, set also to be created in the French Riviera cities of Cannes and Nice, will also be able to stay open until midnight seven days a week.

Employees working between 9:00 pm and midnight will receive double pay and their trip home, and the employer will also cover any childcare costs.

With the reforms, Paris is bidding to cement its reputation as the world's number-one tourist destination.

"Do we want millions and millions of tourists — notably Chinese — who come to the capital to leave us and go and do their shopping in London on a Sunday?" asked Valls in a recent interview.

But the Socialist mayor of Paris, Anne Hidalgo, is staunchly opposed to extending Sunday opening and has described it as a "backward step for democracy."

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BUSINESS

What are the 26 French ‘unicorns’ hailed by the government?

France now has 26 'unicorns', something Emmanuel Macron's government sees as a major success. Here's what this means and how it affects France's future.

People dressed as unicorns attend a tech summit.
People dressed as unicorns attend a tech summit. France now counts 26 start-ups valued at more than $1 billion. (Photo by CARLOS COSTA / AFP)

In 2019, French President Emmanuel Macron set what seemed like an ambitious objective: having 25 French start-ups valued at over $1 billion by 2025. 

These companies are colloquially referred to as “unicorns” or licornes in French. 

The target was very on-brand. Macron had sold himself at a youthful, ambitious and liberalising president keen to lead France towards modernity. 

To achieve this goal, the government lifted regulations; hired liaison officers to manage relations between tech entrepreneurs and government ministers; created a new kind of visa to allow entrepreneurs, innovators and investors to move to France; and launched an incubator scheme known as the French Tech Tremplin (“French Tech Trampoline”) to help underrepresented groups such as women, poor people and those in the countryside to launch tech start-ups. 

Just three years later, it appears these efforts have paid off. 

“They told us that it was impossible – that creating a start-up nation was just an act. But collectively we have got there three years ahead of schedule,” said Emmanuel Macron on Monday, sporting a Steve Jobs-style polo neck as he celebrated the fact that France now had 25 ‘unicorns’. 

On Tuesday, La French Tech, a body run by civil servants aimed at creating a healthy environment for start-ups in France heralded another success – a 26th licorne

The latest addition is a company called Spendesk – it runs a platform that allows small and medium sized businesses to manage spending, expenses, budgets, payment approvals and invoices through a single integrated platform. It is already used by thousands of clients. 

Spendesk recently raised a further $100 million, pushing its overall value past the $1 billion mark. It plans to employ a further 700 people in France. 

La French Tech couldn’t contain its joy. 

“We don’t ask ourselves what is going on, we know it: #FrenchTech is booming #26unicorns”, wrote the organisation in its Twitter account. 

La French Tech claims that beyond the 25 ‘unicorns’ valued at $1 billion or more, there are a further 20,000 tech start-ups in France and that half of French people use their services daily. The organisation says that this sector has already created 1 million jobs – and that this figure should double by 2050. 

“French tech is obviously about more than these unicorns, but I see them as an example, a model for the rest of the ecosytem,” said Macron on Tuesday. 

So who are the other unicorns leading the way? 

Alan

This start-up was created in 2016 and offers health insurance coverage for individuals and businesses. What differentiates it from standard health insurance providers, or mutuelles, is that it functions through an easy-to-use app. Individuals can send medical bills directly from their smartphone and be reimbursed almost immediately. Doctors can be reached through the app’s messaging and video call services. Employers can manage arrêts de travail the comings and goings of poorly staff directly through the interface. It is currently available in France, Belgium and Spain, counting 230,000 members. 

Ankorstore

Ankorstore is an online marketplace aimed at supporting independent wholesalers – from florists to concept stores. It pitches itself as a platform to buy “authentic products and brands that e-commerce giants such as Amazon do not offer.” It is present in 23 European countries with offices in France, Germany, the Netherlands, Sweden and the UK.

BlaBlaCar

This carpooling service has more than 100 million members across 22 countries. It connects drivers with people looking for a lift on a highly accessible app and website based platform. BlaBlaCar allows people to save money on transport and said that it saves 1.6 million tons of CO2 emissions in 2018 through ride-sharing – the platform has grown significantly since then. This company has also started running a bus service, BlaBlaBus. 

BlaBlaCar launched BlaBlaBus in 2019.

BlaBlaCar launched BlaBlaBus in 2019. (Photo by PHILIPPE DESMAZES / AFP)

BackMarket

Backmarket is a website for buying used, unused or reconditioned electronic devices. The company sells everything from cameras, to laptops, to iPhones – at well below the market rate. Many of the products come with a warranty. The company is keen to emphasise its role in reducing electronic waste and carbon emissions involved in manufacturing new products.

Contentsquare 

This start-up has existed since 2012. It acts as a tool to allow website and app designers to monitor how their users behave while on their webpage/app. Contentsquare provides analytical information that can help to tailor websites to improve the digital experiences of users. 

Deezer

Deezer is an online music streaming services similar to Spotify. It was founded in 2007 and counts 16 million active users. 

Doctolib

Doctolib is a platform that connects patients to medical professionals. Creating an account is free and allows you to book medical appointments, with filters such as the kind of care you want, the area of the medical practice and the languages spoken by the doctor. It runs via a user-friendly app and website and is available in France, Italy and Germany. During the Covid-19 pandemic, it has become the main way that French people have booked vaccination appointments. 

Exotec

This company was founded by two engineers in 2014 and manufactures intralogistic robots. The technology is used in warehouses of retailers, supermarkets, e-commerce and industry. In essence, it is used to remove human labour from the supply chain. 

iad

iad is a network where people can sign up to learn how to become an independent real estate agent – it also serves as a site where people can look for property to buy or rent. 14 percent of all properties sold in France in 2020 went through this platform according to one study. 

Ivalua

Ivalua is a tool used by organisations to manage spending and supplies. It operates largely though Artificial Intelligence and provides a wide range of functions designed to improve collaboration and decision-making. 

Ledger

Ledger is a company that provides individuals and businesses an easy way to buy and sell cryptocurrencies and store these currency on USB-type hardware. If you get sick of that guy at work who never stops talking about Bitcoin, this is probably not one for you. 

Lydia

This is a payment app that allows people with French bank accounts to send and receive money with other users, and is often used by friends to reimburse each other with small amounts for dinner, drinks, holidays etc. If you hold your savings in the app, you can benefit from a 0.6 percent interest rate. It also allows you to pay for things overseas without incurring fees. 

ManoMano

ManoMano is an online marketplace specialised in DIY and gardening equipment. It employs 800 people in 4 offices and operates across 6 European markets: France, Belgium, Spain, Italy, Germany and the UK. It’s website sells products from more than 3,600 retail partners and stocks more than 10 million products. 

DentalMonitoring

Patients can download this app after undergoing dental work. They can then use the secured system to send pictures of their teeth to their dentist (if the dentist is subscribed to the service). The start-up boasts that it can allow dentists and orthodontistes to carry out remote consultations and that the AI technology embedded in the app can automatically detect dental problems. 

Meero

Meero is a company that connects professional photographers to clients and vice versa. It organises one photo shoot every 25 seconds and has more than 30,000 customers around the world. 

Mirakl

Mirakl is a cloud-based e-commerce company that allows retailers, manufacturers and wholesalers to access a single online market place. The start-up aims to help other businesses scale-up their operations rapidly and describes its staff as “Mirakl workers” (as in the French ‘miracle’ pronounced me-rackluh). 

OVHcloud

This start-up was founded in 1999 and is now Europe’s biggest cloud provider, offering both public and private information storage solutions. They also provide domain name registration, telecoms services and internet connection. 

PayFit

Payfit is an automated payroll service that allows employers to save time dealing with spreadsheets and other systems. It is an intuitive bit of software already being used by 6,500 small and medium-sized businesses.

Qonto

Qonto provides financial services to freelancers, self-employed people, small businesses, charities and new businesses. It provides solutions for managing expenses, accounting, invoices and payments. 

Shift

This company is based in Paris and helps global insurance companies to detect fraudulent insurance claims via artificial intelligence technology. 

Sorare

This is a fantasy football game where users build and manage squads, trading, selling and buying players. It makes use of blockchain technology. French footballer Antoine Griezmann is a major investor. 

A tradable player card from Sorare.

A tradable player card from Sorare. Credit: Sorare

Swile

This is a financial and networking service for businesses and employees. It essentially is a bank card with an app that allows employers to issue anonymous surveys to employees, facilitate communication via a messaging service, organise collections and plan events. 

Vestiare Collective

This is an online marketplace for second-hand luxury fashion. Be aware that some items still cost thousands of euros, so they’re only ‘bargains’ in relative terms. 

Veepee

This is an online and app-based service. Users can create an account for free to be alerted of upcoming sales of up to 70 percent on their favourite brands. It is available in eight European countries including the UK. 

Voodoo

Voodoo is a French mobile game developer and publisher. It provides help for video game developers to promote their work and councils them on the development process. In the past, Voodoo has come under fire for producing games that appear to be closely modelled on other games already on the market.

SHOW COMMENTS