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World News

France’s structural issues have been uncovered by the pandemic

A couple, one of them on their smartphone, is enjoying the view of the Eiffel Tower at sunset in Paris on February 23, 2021.

Ludovic Marin | AFP | Getty Images

France may still be in the middle of the coronavirus pandemic as the Delta variant is spreading rapidly, but officials and business leaders are looking to a period of recovery and reflecting the broader prospects for France’s political and economic future.

“The recovery is very steep, but even steeper than last year. So we are very happy with it,” said Agnès Bénassy-Quéré, chief economist at the French finance ministry, to CNBC on Sunday, pointing out that the national statistics office is raising its growth forecast for France to 6% in 2021.

“The official forecast for 2021 is still 5% because we are still cautious about autumn. As you said, there is a Delta variant and we kept some restrictions until the end of the year. So already in spring, when this forecast was made, it contained some restrictions, slight restrictions of the second half of the year. So far we haven’t changed that forecast, then we’ll see what happens when we have to do the 2022 budget, “he said, speaking with CNBC’s Charlotte Reed while attending an economic forum in Aix-en-Provence.

Of course, the Covid-19 pandemic has left a lot of devastation and no less in France, where over 5.8 million infections and over 111,000 deaths have so far been recorded, according to Johns Hopkins University.

Like other countries, France put in place emergency measures to support the economy, businesses and employment during the pandemic, and there are now some concerns that reducing that support could lead to job losses and the closure of some businesses.

Bénassy-Quéré said the government has been “very cautious” but the labor market is currently resilient.

“There is a rejuvenation, a gradual phasing out of support, the emergency aid, which comes gradually over the course of the summer. And there will still be some support, for example [the] Long-term unemployment scheme, which also applies in the fall for activities like [the] Aircraft industry where we really want to keep the skills in the industry and so there will be some retraining programs. “

However, he found that while activity in some industries was above pre-crisis levels, some lagged behind, such as tourism. In addition to the uneven recovery, another problem for the government is that France’s mountain of debt has soared to a record high due to huge borrowing. At the beginning of the year, the French statistical office Insee reported that the national debt was 115.7% of GDP at the end of 2020, compared to 97.6% in 2019.

How France will pay off this mountain of debt is uncertain for now, as the government under President Emmanuel Macron will raise taxes just 10 months before the presidential elections. Whether Macron will undertake ambitious (and unpopular) reforms to modernize and simplify France’s sluggish pension system is also uncertain, given the pandemic situation.

So far, two rounds of regional elections in the last few weeks have dispelled expectations that the far-right National Rally – formerly known as the Front National – could do well in the national vote next year after a poor showing in the regions. Turnout was low on both rounds, leading some analysts to express concern about the level of voter dissatisfaction in France.

Valérie Rabault, President of the Socialist Group in the National Assembly, who also attended the Economic Assembly in Aix-en-Provence, told CNBC on Sunday that “French society has broken”, as evidenced by the low turnout in regional votes.

“We had local elections and less than 35% of the people voted, so that’s very low. This was the first time in France that so few people vote in local elections. For me it reflects … a kind of indifference on the part of the population to build a common project for France, for society, and that is the great challenge for us as politicians to be able to and have to tackle this issue [a] more positive message after the crisis, “she said, adding,” We have to define something, a common project that can unite people. “

Structural problems

Business leaders who attended the Aix-en-Provence Economic Forum told CNBC that there were structural problems in France that would not be easy to fix.

“The rifts that existed in French society are still there, be it the territorial divide, the generational divide and the very low percentage of voters as we saw in the last elections,” Pierre-André de Chalendar, Chairman of French building materials group Saint-Gobain, said CNBC on Saturday.

“The priorities are clear, (they are) the energy transition, reindustrialization – which is the best way to overcome this territorial gap – and to place more emphasis on the youth, on education. The question is how do we do it, and I think the problem in France is that the state as a whole is too big and not efficient enough. “

Ross McInnes, Chairman of Safran, agreed that “two important structural issues” should be addressed in France, the most important being the quality of education in France.

“When it comes to education, our school system has let us collectively,” he told CNBC. “Hundreds of thousands of young French people … drop out of secondary school with no good math, you know, the three ‘Rs’ of reading, writing, and arithmetic. And we urgently need to fix that in order to be able to recruit talent for good jobs. “

Categories
Politics

Federal Inspectors Worry Extra Vaccines Have been Uncovered to Contamination

WASHINGTON – Federal regulators have identified serious defects at the Baltimore plant that resulted in up to 15 million potentially contaminated doses of Johnson & Johnson’s coronavirus vaccine being spilled. This casts doubt on the continued production of a vaccine in the US that the government once considered essential in the fight against the pandemic.

Food and Drug Administration regulators said the company that makes the Emergent BioSolutions vaccine may have contaminated additional doses at the facility. They said the company had not fully investigated the contamination while raising concerns about the disinfection practices, the size and design of the facility, the handling of raw materials and the training of workers.

“There is no guarantee that other lots have not been exposed to cross-contamination,” said the FDA’s 12-page report.

The report was a harsh reprimand for Emergent, who had long downplayed setbacks at the factory, and added to the problems for Johnson & Johnson, whose vaccine was viewed as a game changer because it only takes one shot and is mass-produced can volume and is easy to store.

In the US, production is now ceasing and all vaccines made at the factory have been quarantined. Johnson & Johnson fell far short of its promises to deliver tens of millions of doses to the federal government, partly because concerns about an extremely rare but dangerous blood clotting disorder led federal officials to temporarily suspend distribution last week.

The FDA’s findings, based on an inspection that ended Tuesday, underscore questions raised in New York Times reports about why Emergent didn’t fix issues sooner and why federal officials overseeing their lucrative contracts weren’t demanding better performance .

A series of confidential audits The Times conducted last year warned of the risk of viral and bacterial contamination and a lack of adequate sanitation at the Baltimore plant. Separately, The Times reported, a leading federal manufacturing expert warned last June that Emergent must be “closely monitored.”

Some health officials were surprised by the FDA’s conclusions.

“I’m shocked – I can’t put it any other way,” said Dr. José R. Romero, chairman of a panel that advises the Centers for Disease Control and Prevention and will recommend the use of Johnson & Johnson vaccine later this week. “Inappropriate disinfection, prevention of contamination – these are significant and serious violations.”

In statements on Wednesday, the FDA, Emergent and Johnson & Johnson said they were working to resolve the issues at the factory. There was no indication of how long that would take.

Emergent said, “While we are never satisfied with defects in our manufacturing equipment or processes, they can be corrected and we will take quick action to correct them.”

The FDA has not yet certified the facility in the Bayview neighborhood of Baltimore, and no doses administered there have been released to the public. All Johnson & Johnson recordings made in the United States are from overseas.

In a statement, Dr. Janet Woodcock, Acting Commissioner of the FDA, and Dr. Peter Marks, the top vaccine regulator: “We will only allow the release of products when we are sure that they meet our quality expectations.”

Emergent is a longtime government contractor who has spent much of his time over the past two decades building a market for federal biological defense spending.

Although the Emergent government placed a $ 163 million contract in 2012 to prepare the Baltimore plant for mass production in a pandemic, the site remained largely untested and the company failed to meet the requirement to demonstrate its rapid-reaction capabilities, according to former health officials and contract documents.

Even so, the Emergent government placed a $ 628 million order in June last year, largely to reserve manufacturing space at the plant, and prompted the company to manufacture the Johnson & Johnson shot and a separate vaccine developed by AstraZeneca.

Now Emergent’s dealings with the government are being scrutinized more and more closely. On Tuesday, the House Select Coronavirus Crisis Subcommittee and House Committee on Oversight and Government Reform announced an investigation into the company’s Covid-19 vaccine deal, as well as its long-standing control over an oversized portion of the country’s emergency medicine budget to Reserve, the Strategic National Stockpile.

A Times investigation found that the company’s purchase of the company’s anthrax vaccine over the past decade accounted for nearly half of the reserve’s total annual budget, leaving less cash to spend on critical supplies like masks, which were in short supply last year.

The Bayview facility was supposed to produce most of the Johnson & Johnson vaccine, which received federal emergency approval this year, but only for doses made in the Netherlands. AstraZeneca’s vaccine is not yet approved in the US, regardless of where it is made.

The FDA inspection began after routine checks revealed that Emergent employees had contaminated at least part of a batch of 13-15 million doses of the Johnson & Johnson vaccine with the harmless virus used to make the AstraZeneca shot. Regulators determined that Emergent did not investigate this incident thoroughly and only performed a routine cleanup afterwards. A previous review by Bayview for a pharmaceutical customer found that Emergent glossed over deviations from manufacturing standards without conducting thorough reviews.

The inspectors who examined security recordings as part of their review found that Emergent was not considering whether one or more employees might have been the source of the contamination. Workers are expected to change clothes, ankle boots and showers before moving between the various manufacturing zones for Johnson & Johnson and AstraZeneca.

But regulators said the rule appeared to be routinely violated. In a period of 10 days in February, for example, 13 employees moved from one zone to another on the same day, but only one documented having showered. The inspectors also said Emergent failed to consider whether using common storage containers for raw materials might have caused the contamination. Emergent’s internal audit last July found that the flow of workers and materials through the plant was not adequately controlled “to avoid mix-ups or contamination.”

Federal officials have already insisted on a major change that they believe should significantly limit the risks. This month they instructed Emergent to stop the AstraZeneca shot at the factory and are now trying to help AstraZeneca find a new manufacturing facility.

In another result, the FDA regulators wrote that the Bayview building “is not being kept in a clean and hygienic condition”. Nor is it “of the appropriate size, design and location to facilitate cleaning, maintenance and proper operation,” they said.

They cited peeling paint, damaged walls, improperly trained staff, overcrowded equipment and poor waste disposal. A problem that, in their opinion, could lead to contamination of the warehouse in which raw materials are stored.

The results were released two days prior to the CDC’s scheduled vote to extend, lift, or change the suspension of Johnson & Johnson. Officials recommended the break to investigate eight cases of a rare coagulation disorder in vaccine recipients, one of which was fatal.

Johnson & Johnson resumed its rollout in Europe this week after regulators investigated similar concerns. They recommended putting a warning about the blood clots on the vaccine label, but said the benefits outweighed the risks.

The inspection report comes as a group of shareholders sued Emergent, alleging executives misled investors about the company’s ability to manufacture Covid-19 vaccines in Baltimore.

Emergent’s share price soared following announcements of $ 1.5 billion in deals with the federal government, Johnson & Johnson and AstraZeneca last year. Throughout 2020, its founder and chairman Fuad El-Hibri deposited over $ 42 million in shares and options, and the company’s executive director Robert Kramer recently received a cash bonus of $ 1.2 million.

The lawsuit alleges that the stock price was artificially increased because executives failed to disclose significant quality control issues at the facility. Emergent stocks have been falling in the past few weeks.

Shortly after the Trump administration’s Operation Warp Speed ​​decided to award the $ 628 million contract to Emergent, Carlo de Notaristefani, a manufacturing expert who has been overseeing vaccine production for the federal government since last May, warned the company about his To have to “strengthen” quality controls. requires “significant resources and dedication”.

Dr. Robert Kadlec, the former Trump administration official overseeing the procurement process, said in an interview Tuesday that officials “recognized that there would be inherent risks,” but the government intends “to try to manage those risks consistently.” to reduce. ” . ”

Dr. Romero, the head of the CDC advisory board who is also the Arkansas Secretary of Health, was concerned that the plant’s problems could keep people from getting vaccinated, even though doses from there have not reached the public. Andy Slavitt, a senior health advisor to President Biden, told reporters that the audit “demonstrated a process that is working as it should”.

Johnson & Johnson said it had already increased oversight of Emergent and would “ensure that all FDA observations are promptly and comprehensively addressed”.

The pharmaceutical company is expected to nearly double its supervisors at the Bayview facility to perhaps a dozen, although Emergent will continue to employ around 600 people.

Categories
Business

How Texas’ robust winter uncovered U.S. energy grid issues

Texas had a rough winter in 2021.

In mid-February, when temperatures dropped in the single digits, demand for electricity hit a record high across Texas. The supply was running low, causing the state’s utility operator to introduce rolling blackouts. At the height of the crisis, more than 4.5 million customers lost electricity. The unusual winter storm caused neighboring states like Louisiana, Oklahoma, Arkansas, and Kansas to also impose rolling power outages.

Texas residents shivered from the cold as the outages lasted for days. You have lost access to water. Some turned their cars on in their garages to keep warm and then died of carbon monoxide poisoning.

The historic collapse was a wake-up call – if the Texas power grid was so fragile, what about the rest of the United States? According to Climate Central, the US has seen weather-related blackouts have increased by 67% since 2000. Part of the problem is aging infrastructure. Most of today’s power grid was built in the 1950s and 1960s with the hope that it would take 50 years.

Check out the video above to find out what happened in the Texas power outage and how it’s a warning sign on the US power grid.

Categories
Politics

Trump’s ‘Legislation and Order’: One Extra Misleading Tactic Is Uncovered

“The attack on the Capitol was the result of years of erosion of the line between fact and fiction and right and wrong,” said Rory Cooper, a Republican strategist. Mr. Cooper argued that there is now an opening for a “conservative candidate” to finally decouple appeals to law and order from the selective enforcement of the Trump era, “but we are a long way from that time.”

Other Republicans insist that no reason has been lost on this issue – that the party is likely to have the upper hand in the eyes of voters. “I think Republicans have the benefit of law and order right now and still do, regardless of what happened at the Capitol,” said Chris Russell, a longtime Republican advisor and advertiser.

And should the Democrats “hold on to a message that defeats the police,” added Russell – although Mr Biden denounced it – Republican candidates are likely to continue to succeed in calling their party more committed to public safety and making it stronger to support law enforcement.

All of this is in line with how some Republican lawmakers streamlined the attack on the Capitol. They insist that the sea of ​​protesters and rioters was not the result of months of indulgence for the president’s lie that the election was stolen, did not reflect the core of the party, in fact did not reflect the party at all. Republican officials across the country have falsely claimed the deaths and damage were caused by Antifa.

Hogan Gidley, a spokesman for the president, argued that Mr Trump’s message of love did not include those who stormed the Capitol. “The President didn’t talk about these people. It was clearly the people who were there to peacefully gather and protest peacefully, ”said Mr Gidley, although Mr Trump had not specified that fact. “Because we believe in protecting not only the concept of law and order, but also the courageous men and women who introduce law and order.”

However, if law and order imply a commitment to equal security and justice, not even Mr Trump’s own staff seem certain that his supporters will adhere to it in the final days of his presidency.

And so the Law and Order Presidency ends as follows: Hundreds of National Guards who are posted behind a ten foot fence with barbed wire and protect the Capitol not from the people Mr. Trump demonized during his presidency, but from those who which he didn’t do.