My dear compatriots of the cities, overseas and abroad,
France has democratically expressed itself. A majority of you has rejected the European Constitution. It is your sovereign decision. I take note of it.
In spite of this, our interests and our ambitions are deeply related to Europe. France, a founding member of the Union remains, naturally, in the Union. I make a point of saying to you, to our European partners and to all the people of Europe that France will continue to maintain it's place in the regard to its engagements. I will take care of it.
Processes of ratification are currently underway all of the Convention countries. So far, nine countries have already decided in favor. Our other partners will express themselves in their turn. Until then, the European Union will continue to function on the basis of current treaty.
We have in front of us important deadlines. On June 16, the European Council will meet in Brussels. I will defend the position of our country there by transmitting the message of the French women and men.
But let us not deceive ourselves, the decision of France inevitably creates a difficult context for the defense of our interests in Europe. We will have to answer it by uniting around a common purpose, that of the national interest.
My dear compatriots,
During this debate, you also also expressed your concerns and your expectations. I intend to answer them by giving a new and strong impulse to official action. I will let you know in the next days of my decisions concerning the government and the priorities of it's action.
With 92 percent of votes counted, the treaty was rejected by 56.14 percent of voters, France's Interior Ministry said, according to The Associated Press. It was supported by 43.86 percent.
Economists may agree the Eurozone’s record has been dire, but they disagree about why. The orthodox explanation, popular amongst many US-trained economists and often echoed by the OECD, is that Europe suffers from bloated budgets, inflexible labour markets and high taxes. Remove the welfare state everyone will get back to work. The alternative explanation, favoured by post-Keynesians, is that the balanced budget corset imposed by the Stability and Growth Pact (SGP) is paralysing the Eurozone.
In contrast to Britain and the US where growth is fuelled by rising asset prices, private debt and public spending, in Germany, France and Italy, both government and household savings have risen over the past decade. Public and private frugality not only depresses aggregate demand, but under conditions of very low inflation it leads to ‘deflationary expectations’; ie, the darker the economic climate, the more one must save for a rainy day. In short, the Eurozone suffers from deficient aggregate demand. A devalued dollar, enabling the US to postpone its adjustment, makes European prospects even bleaker.
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