Europe: Renewed Franco-German cooperation? - BBH

The wave of optimism in Europe and among investors in response to the French elections was not simply about the turning back the National Front as it was also the possibility of renewed Franco-German cooperation, which had seemed to wither on the vine in recent years.  

Key Quotes

“This project was recognized as all the more important given the UK's decision to leave the EU and seeming unilateralist (not isolationist) thrust of the US.  The necessary precondition is that the France had to regain the authority to do so by getting its own economic and fiscal house in order.” 

“Recall that Fillon, the center-right candidate in the French presidential election, campaigned in part as if to bring to France what Thatcher brought to the UK.  Although Fillon did not end up winning, of course, the thrust of his program appears have been adopted by Macron.  Labor reforms made to increase the flexibility of hiring, firing and wage settlement, tax cuts wealthy and dramatic spending cuts is the neoliberal agenda.”  

“Macron's honeymoon in France is over.  His support has fallen to levels below Trump's in the US.  Consider Japan's government too.  There is no populist-nationalist challenge to Abe, who articulates a stronger nationalist vision, but the government's support had fallen to 24% before the recent cabinet reshuffle, according to a poll conducted for the Mainichi newspaper.”