Double standards in France’s treatment of Islam?
France has the largest Muslim population in Europe. Some 6 million Muslims reside in France, some albeit trying to head to different countries; France has become a sort of Mecca in attracting migrant Muslims. This observant population raises challenges for a mainly secular nation, and France has been firm about limiting the influence of Sharia in the country. France has recently angered some traditional Muslims by banning the wearing of veils in schools, aggressively enforcing dress codes such as banning full body “Islamic” swimwear, and is even toying with making the wearing of a burqa in public illegal.
The one area where France feels it may want to be more flexible is in allowing Islamic finance laws. This is a fast growing area of alternative finance, and as French law doesn’t currently allow for its requirements, the UK is making hay. British law accommodates the legal framework and so their share of the estimated $822 billion market is booming. France sees this as a little unfair. They house the community disproportionately, but are not getting to enjoy the financial gain. Attempting to make accommodations for Islamic finance is causing a political furor in France, and it will be interesting to see whether principle or self-interest wins out.
In a global recession, Islamic finance looks an attractive business. Worldwide sharia-compliant assets grew by 29% over the past year to $822 billion, according to The Banker. French officials fret that Paris is missing out on its share, particularly to London, whose multicultural approach gives an open-arms welcome to Islamic investors. To catch up, the French have pushed through changes to their tax and legal codes. But their latest effort has prompted a political backlash.
The fuss began when an amendment was tacked on to a draft bill on the financing of small firms to give legal rights to holders of sukuks, or Islamic bonds, “to conform with the ethical principles of Muslim law or sharia.” Socialists were aghast. It was nothing less than “the introduction of sharia into French law!” exclaimed Henri Emmanuelli, a Socialist deputy. By slipping the amendment into an unrelated text, said another, “it could give the impression that we want petrodollars, but we don’t want to advertise it.” Traditionalist members of Nicolas Sarkozy’s centre-right party were also upset. The constitutional council, France’s highest court, seems to agree. Last month it threw out the amendment, albeit on technical grounds.
For Christine Lagarde, the finance minister, who has pushed to open France up to Islamic finance, it is a matter of keeping Paris a competitive financial centre. The government is backed by French financiers who see a handy new source of income. Some say Paris could take 10% of the global market by 2020. “Suddenly, having 6m Muslims is a great advantage,” notes one dryly.
