Identifier
Created
Classification
Origin
05PARIS1230
2005-02-25 16:37:00
UNCLASSIFIED
Embassy Paris
Cable title:  

FINANCE MINISTER TURNS IN RESIGNATION

Tags:  EFIN ECON PGOV FR PBIO 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS PARIS 001230 

SIPDIS

PASS FEDERAL RESERVE
PASS CEA
STATE FOR EB, EUR INR/EUC AND DRL/IL
TREASURY FOR DO/IM
TREASURY ALSO FOR DO/IMB AND DO/E WDINKELACKER
USDOC FOR 4212/MAC/EUR/OEURA
DEPT OF LABOR FOR ILAB
DEPT OF COMMERCE FOR ITA

E.O. 12958: N/A
TAGS: EFIN ECON PGOV FR PBIO
SUBJECT: FINANCE MINISTER TURNS IN RESIGNATION


UNCLAS PARIS 001230

SIPDIS

PASS FEDERAL RESERVE
PASS CEA
STATE FOR EB, EUR INR/EUC AND DRL/IL
TREASURY FOR DO/IM
TREASURY ALSO FOR DO/IMB AND DO/E WDINKELACKER
USDOC FOR 4212/MAC/EUR/OEURA
DEPT OF LABOR FOR ILAB
DEPT OF COMMERCE FOR ITA

E.O. 12958: N/A
TAGS: EFIN ECON PGOV FR PBIO
SUBJECT: FINANCE MINISTER TURNS IN RESIGNATION



1. SUMMARY. Intense and unabating media coverage of Finance
Minister Herve Gaymard's extravagance in his choice of
taxpayer provided housing, and his lying about his financial
situation, has prompted him to turn in his resignation on
February 25. Despite his efforts to focus attention on GOF
economic policy in the run-up to presidential elections in
2007, the scandal ultimately destroyed his credibility. END
SUMMARY.


2. Finance Minister Herve Gaymard made headlines recently,
but not for anything substantive. Instead, local papers
questioned his judgment and credibility in an affair
involving his choice of lodging. Ministers in France are
entitled to have lodging provided to them at government
expense, if they lack housing in Paris. Gaymard's large
family complicated his situation (he has 8 school-age
children and his wife is head of France's investment
promotion agency, doubling his representational needs). His
junior Ministers already occupied the suites provided within
the Ministry. So, Gaymard's wife picked out a very nice
apartment on the local market - unfortunately too nice. The
apartment captured media attention both for its size, 600
square meters on two floors, and its cost, 14,000 euros a
month, not including renovation costs initially claimed to
total over 150,000 euros.


3. Gaymard made things worse when he initially defended his
choice, saying that he was a middle-class bureaucrat, the
son of a shoemaker, with no real estate of his own. In
fact, Gaymard not only has an apartment in Paris, which is
rented out to a friend, he has two other apartments plus two
houses outside Paris. His Ministry issued three separate
press releases explaining his situation, but the stream of
revelations prompted the Socialist opposition to clamor for
his resignation, arguing that the untruths and personal
financial irresponsibility sapped Gaymard's credibility.

--------------
COMMENT
--------------


4. Gaymard's resignation puts what was a bright political
future in shadow. In addition, it undercuts whatever chance
he may have had to win support for the economic reforms he
had proposed (septel). It is up to President Chirac to
decide whether to accept the resignation (and begin the
selection process for a successor, not necessarily an easy
task). To avoid unneeded distraction on the upcoming highly
contested referendum on the European constitution, and the
2007 French presidential elections, the least difficult path
is to choose a bland substitute. In the meantime, the press
is sure to investigate the living arrangements of the other
members of Chirac's government.
WOLFF