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The president's rejection of a center-left coalition's prime minister candidate "is not merely a political maneuver to hold onto power, but a direct attack on French progressive forces."
Progressive International on Wednesday issued a scathing critique of French President Emmanuel Macron and backed calls for protests next month over his rejection of a leftist alliance's candidate for prime minister following recent snap elections.
Nouveau Front Populaire (NFP), a coalition of left-of-center parties formed to counter the far-right in this summer's elections, won the most seats, beating out Macron's centrist alliance and Marine Le Pen's right-wing Rassemblement National (RN), but lacks an absolute majority.
Macron has since refused to appoint NFP's chosen candidate, Lucie Castets, as prime minister, which the Progressive International Observatory blasted as "blatant disregard of the election results and the precedent established throughout the French Fifth Republic."
Progressive International launched in May 2020 to unite, organize, and mobilize progressive groups and individuals around the world, and since then it has built a global Observatory "with the legal expertise, data science, and parliamentary power to track the attacks on our democratic institutions and provide a real-time defense against them."
"The attempt to stifle political competition and subvert the democratic process is a direct assault on these core values."
France's snap elections—which Macron called after his party performed poorly in European elections—were held on June 30 and July 7. Since then, the Observatory noted, "a caretaker government has led France, with Macron citing the Paris Olympics as a reason to delay the appointment."
While the Olympic Games have concluded, Macron opened the Paralympic Games in the French capital Wednesday evening. They are set to run through September 8.
Macron—defending his refusal to appoint Castets—has argued that because centrist and right-wing parties would block any actions by NFP, "the institutional stability of our country therefore requires us not to choose this option." His critics in France are now planning "a large demonstration against Macron's coup on September 7."
Echoing the French critics, the Observatory declared Wednesday that "Macron's move is a direct challenge to the democratic will of the people and an affront to the foundational tenets of political pluralism."
"This action is not merely a political maneuver to hold onto power, but a direct attack on French progressive forces," the Observatory said, pointing to pledges by RN and centrist leaders to move a no-confidence motion against any prime minister nominated from the NFP.
The Observatory also highlighted Macron's "sinister divide-and-rule move" to isolate the far-left La France Insoumise (LFI), led by Jean-Luc Mélenchon, by appealing to other NFP parties "to break the political paralysis."
The other parties that make up NFP have rebuffed the French president and, according toFrance 24, "Mélenchon even threatened to start impeachment proceedings against Macron."
Progressive International's Observatory emphasized that "democracy thrives on the diversity of ideas and the peaceful transition of power. The attempt to stifle political competition and subvert the democratic process is a direct assault on these core values."
The Observatory concluded with a "call to democratic forces worldwide to oppose Emmanuel Macron's authoritarian efforts to repress the will of the French people—and join the call for the September 7 mobilization to defend it."
"Such a law has implications far beyond Honduras' borders, setting an example of how states can assert sovereignty through taking action against tax injustice individually and collectively," 85 leading economists wrote.
Eighty five progressive economists from around the world on Wednesday issued a statement in support of a tax reform being considered in Honduras, arguing that it could be a model for other Global South countries, as it would tighten tax law for rich people and corporations while preventing the country from becoming a tax haven.
The Tax Justice Law, first proposed by the administration of leftist President Xiomara Castro in March 2023, has remained stuck in parliament due to opposition from conservative, pro-business forces in Honduras, one of the poorest and most unequal countries in the Western Hemisphere.
The proposed reforms include closing corporate tax loopholes; taxing companies' global profits, not just national profits; ending bank secrecy; and holding beneficial owners liable for their taxes. The law wouldn't create new taxes or raise current rates.
The 85 economists, including Joseph Stiglitz, Gabriel Zucman, Jeffrey Sachs, Ann Pettifor, and Yanis Varoufakis, published the statement in Progressive International, a left-wing network establish in 2020. They cited estimates that the country had lost about $20 billion in tax revenues between 2010 and 2023 due to tax loopholes—more than the entire $16.6 billion debt that the country faces, at crippling interest rates.
TEGUCIGALPA, Honduras 🇭🇳 — 85 of the world's leading economists, incl. @JosephEStiglitz, @Jayati1609, @JoseA_Ocampo, @AnnPettifor, @gabriel_zucman and @yanisvaroufakis, endorse the @PartidoLibre Tax Justice Law, "setting an example" for tax policy worldwide. Read the letter ⬇️ pic.twitter.com/9ogi9SlWtf
— Progressive International (@ProgIntl) July 31, 2024
Castro was elected in late 2021 and took office in January 2022 with an "inspiring agenda," but has faced opposition from conservative forces and the United States, according to Karen Spring, coordinator of the Honduras Solidarity Network.
Castro's husband Manuel Zelaya, also a leftist, led the country from 2006 until 2009 but was ousted in a coup, and the country descended into chaos in the 2010s, with drug gangs dominant and the government mired in corruption. The Intercept has reported that the U.S. may have encouraged the 2009 coup.
In 2022, Castro and the National Congress of Honduras reversed a conservative initiative to establish special economic zones, most notably one on the island of Roatán. However, Honduras Próspera, a U.S. company backed by billionaire libertarian Peter Thiel and others, has sued the government for $11 billion over the reversal, using the investor-state dispute settlement (ISDS) system that allows multinationals to sue nations that institute new laws that affect their profits and have the cases heard by private tribunals.
U.S. Sen. Elizabeth Warren (D-Mass.) and other progressive lawmakers cited the Honduras Próspera case when pushing to abolish the ISDS system last year.
As with Castro's efforts on special economic zones, her tax reforms face hurdles.
"Big capital and the media ecosystem close to it have launched a smear campaign against the Tax Justice Law," Ojalá, a digital nonprofit magazine based in Mexico, reported last year.
Every major union organization in Honduras supports the proposed law, a union leader told Ojalá. And the proposal has now gained international attention. Last week, the South Centre, a research institute based in Geneva, issued a report in favor of the law, calling it "timely and welcome," and arguing that it's in keeping with the global minimum tax agreement made by 137 countries in 2021, whose implementation is ongoing.
Similarly, the group of economists on Wednesday wrote that Honduras was "on the path to being labeled a tax haven" but could "turn the page" with the passage of the Tax Justice Law, which would "establish a fairer and more robust system of taxation and incentives that will provide a sounder footing for Honduran development."
The economists concluded that "such a law has implications far beyond Honduras' borders, setting an example of how states can assert sovereignty through taking action against tax injustice individually and collectively."
"They refuse to become another laboratory for neoliberalism—impoverished, beaten, or killed for the benefit of foreign corporations and their lackeys in the Kenyan government."
Progressive International on Thursday applauded the people of Kenya for taking to the streets en masse to defeat an International Monetary Fund-backed legislative package that would have hiked taxes on ordinary citizens as part of an effort to repay the government's powerful creditors.
"Pushed through at the behest of the International Monetary Fund, the World Bank, and the U.S. State Department, the bill would impose severe austerity measures and crippling taxes on Kenya's working people, who are already strained by Kenya's legacy of colonial underdevelopment," Progressive International said in a statement.
"The Progressive International stands firmly with the people of Kenya," the organization added. "They refuse to become another laboratory for neoliberalism—impoverished, beaten, or killed for the benefit of foreign corporations and their lackeys in the Kenyan government."
The Kenyan government's proposal, welcomed by the IMF as necessary for "debt sustainability," triggered massive youth-led protests in the nation's capital last week as thousands of citizens already immiserated by sky-high living costs flooded the streets to express outrage at the U.N. financial institution and their government for fueling the crisis.
The government crackdown was swift and deadly, with police using tear gas and live ammunition to beat back demonstrators calling for the withdrawal of the proposed bill and the resignation of President William Ruto, who took office in 2022.
Protesters achieved one of their objectives Wednesday when Ruto announced he would not sign the tax legislation, just days after he
ordered the country's military to help suppress the demonstrations.
"Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill, I concede, and therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn," Ruto said in an address to the nation, which spends more than a quarter of its revenue on debt interest payments.
"The protesters we have been speaking to are still very angry, still very frustrated, they hold the president responsible for the deaths of those young Kenyans across the country."
As The Associated Pressreported, the withdrawn measure would have "raised taxes and fees on a range of daily items and services, from egg imports to bank transfers."
Kenya's public debt currently stands at $80 billion, around $3.5 billion of which is owed to the IMF—an explicit target of protesters' ire.
"Kenya is not IMF's lab rat," declared one demonstrator's sign.
The IMF said in a brief statement Wednesday that it was "deeply concerned" about the "tragic events" in Kenya and claimed its "main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the wellbeing of its people."
“Kenya is not IMF’s lab rat”
“I was in my healing era” pic.twitter.com/xLt2GG51hf
— Larry Madowo (@LarryMadowo) June 20, 2024
As Bloomberg's David Herbling wrote over the weekend, Ruto "has spent his first two years in office ramming through a slew of unpopular taxes—on everything from gasoline to wheelchair tires, bread to sanitary pads—thrilling international investors and the IMF, which has long urged Kenya to double its revenue collections to address its heavy debt burden."
Ruto's withdrawal of the tax-hike bill appeared unlikely to fully quell mass discontent over the president's IMF-aligned economic policies as protests continued on Thursday.
"The protests today are not as big as they were two days ago but they are still no less intense where they are happening," Al Jazeera's Zein Basravi reported from Nairobi. "If President Ruto, protesters say, had signed off on killing the tax bill 72 hours ago, a week ago, these protests might not be happening. But the decision he made, the concession, has come too little too late, and it has not gone far enough, and it has come at the cost of too many young lives."
"The protesters we have been speaking to are still very angry, still very frustrated, they hold the president responsible for the deaths of those young Kenyans across the country, 23 killed," Basravi added. "And they hold Parliament responsible for not standing stronger, standing firmer, against the president as they feel he was overreaching his position."
U.S. Rep. Ilhan Omar (D-Minn.) said in a statement Wednesday that it is "crucial to recognize that the International Monetary Fund's austerity conditions have contributed to the economic hardships facing Kenyan citizens."
"These measures often disproportionately affect the most vulnerable populations and can exacerbate social unrest," continued Omar, who chairs the U.S.-Africa Policy Working Group. "It is imperative that protesters remain peaceful as they continue to demand change. I stand in solidarity with the people in the wake of both state violence and IMF-imposed austerity measures."
"The Kenyan government must immediately disclose the location and condition of all those who have been taken into custody or disappeared, cease the use of excessive force, respect the right to peacefully protest, and continue to engage in meaningful dialogue to address the legitimate concerns of its citizens," Omar said.