Identifier
Created
Classification
Origin
05PARIS7630
2005-11-08 15:13:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Paris
Cable title:  

NEW FRENCH BUSINESS REPRESENTATIVE PARISOT ON

Tags:  ECON ELAB FR KBIO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 PARIS 007630 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON ELAB FR KBIO
SUBJECT: NEW FRENCH BUSINESS REPRESENTATIVE PARISOT ON
FRENCH ECONOMY AND CHALLENGES


UNCLAS SECTION 01 OF 02 PARIS 007630

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON ELAB FR KBIO
SUBJECT: NEW FRENCH BUSINESS REPRESENTATIVE PARISOT ON
FRENCH ECONOMY AND CHALLENGES



1. SUMMARY. France's new business spokesman Laurence
Parisot believes France is still "quite competitive" despite
the French public's negative perception of the private
sector. Parisot, who was elected as first woman president of
the French employers association MEDEF in July 2005, told
Ambassador Stapleton that it was essential to change the
"anti-business reflex" that reigned in France. She was
cautiously optimistic on some aspects of Prime Minister
Villepin's management of the economy, notably his proposed
tax reform and new labor contracts. Overall, she said he was
"treading water". She lamented the fact that her
predecessor, Ernest-Antoine de Selliere (now president of
UNICE) had done little to maintain links with U.S. business
during the early years of the Iraq war. Finally, she
responded positively to the suggestion that the
Franco-American Business Council be revived by interested
investors, as a means of attracting increased U.S. investment
to France. END SUMMARY


2. (U) Ambassador Stapleton met October 21 with Laurence
Parisot, president of MEDEF, the French employers
association. He was accompanied by FCS Minister Counselor and
Econoff. MEDEF is France's umbrella employers' organization
representing most businesses. Parisot was elected in July
2005 to replace Baron Ernest-Antoine de Selliere, who took up
the Presidency of UNICE, the European umbrella employers
organization (Union des Industries de la Communaute
Europeenne) headquartered in Brussels.


"THE WEIGHT OF THE PAST"(
--------------

3. (SBU) Parisot said she was "not pessimistic" about the
state of the French economy. She said she thought the economy
was burdened by the "weight of the past", notably its heavy
public debt and its rigid labor laws. But she believed France
was still competitive. She told Ambassador she thought Prime
Minister Dominique de Villepin's performance so far was "not
so bad", but that basically he was "treading water". She
highlighted his proposals to liberalize work contracts and
tax reforms as potentially positive.

UNIONS AND MANAGEMENT
--------------


4. (SBU) Parisot said her top priority was to change the
French public's perception of the private sector. She said
companies would have to strengthen their communication
efforts and open up more to "civil society". Curiously,
according to MEDEF polling, the French public has a positive
impression of individual companies, including the companies
that they have worked for. However, they have a negative
perception of "business" and the private sector, in general.
She herself has made an effort to include more entrepreneurs
and small company CEOs at MEDEF, which has traditionally
represented big business. She also said she would also try to
effect a reform of the way employers worked with unions,
notably to ensure that unrepresentative unions could not
obstruct companies as they do now. French politicians on the
left and right, she said, were "afraid" of union leaders, and
rigid labor laws remained in place.


5. (SBU) Parisot told Ambassador Stapleton she regretted the
difficulties for American and French business during the
beginning of the Iraq war, and was mildly critical of her
predecessor Selliere for having done little to try to stem
the animosity on both sides. Both the U.S. and France have
strong business and cultural links, but we cannot assume, she
said, that relations will remain good. Both sides need to
"try doubly hard to reinforce" the relationships.

FRANCO-AMERICAN BUSINESS COUNCIL?
--------------

6. (U) Ambassador encouraged her to respond positively to
U.S. investors such as KKR's Henry Kravis and Disney's Bob
Eiger, who had suggested reviving the Franco-American
Business Council (FABC). An annual exchange among a small
number of CEOs and investors could be useful, the Ambassador
suggested, but ought to be "business-driven". Both agreed
that such a forum should also include entrepreneurs and
representatives of smaller businesses, in additional to the
multinationals with interests on both sides of the Atlantic.


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

7. (SBU) COMMENT. Parisot won election to MEDEF in a
lightning campaign, beating other more established candidates
such as former Economy Minister Francis Mer and top textile
executive Guillaume Sarkozy, brother to Nicolas, currently
Minister of Interior. The first woman to take the job,
Parisot has won some initial kudos in business circles for
her fresh approach and outspokenness. Her willingness to
reach out to U.S. business is also positive. But she is new
to tough union-management negotiations and the kind of
political maneuvering this requires in France. She is likely
to have a slower learning curve and take longer to have an
impact in this critical area.
STAPLETON

Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm
Stapleton