Having just returned from Europe, I wanted to share with you one of the major impressions from my trip. London is booming. The British economy is strong and there is a general feeling of optimism. In Paris, the mood is somber and pessimistic. The French economy is stuck in a rut.

This general impression carried over to a number of critical issues. For example, on Eastern Europeans moving west to work, the attitude in France is that “Polish plumbers” will be taking jobs away from French people, and we have to find a way to limit the movement of Eastern Europeans coming to France to seek jobs, although that is permitted under the rules of the expanded EU. In England, the attitude was diametrically opposite. There the prevailing view is that workers coming from Poland and the Czech Republic are performing valuable and needed labor and thereby help to strengthen the economy.

Similarly, on the clash of civilizations, i.e., the conflict between Christians and Muslims, there is also a difference. Notwithstanding the bombings last year in England and the Muslim population pockets in certain areas of the country, this does not appear to be an issue that will bring the country to its knees. On the other hand, in France one quickly gets the impression that the problem hangs over French society like a dark cloud. Somehow, the government must find a way to integrate, at least economically, its Muslim population or the next round of violent riots will occur.

Speaking of riots, the demonstrations of the students and unions concerning the change in French Employment laws has not run its course. The government backed down and withdrew the proposed law from the books that would have permitted employers more latitude in firing new hires. The students and unions want changes that it will expand their benefits and lead to more pay for even less work. The government knows it has to gain control of its labor segment or its economy will continue to languish. Tune in for further proposed laws and accompanying demonstrations.

On foreign policy, Tony Blair is personally in trouble and press reports that his wife spent $12,000 in one month, billed to the Labor party to have her hair done by a personal hairdresser did not help his situation. Nonetheless, even with the lack of popularity for the Iraqi war, England's close relationship with the United States is paying economic dividends.

Blair lost his hard fought battle to have England abandon the British pound in favor of the Euro and it's a good thing for the country that he lost. The pound is strong and permits England to operate as a separate financial entity. Numerous American firms in finance law and other areas have established offices in London, taking advantage of the common language. In the era of globalization, the English language has clearly taken over from French. That language factor helps England enormously. One fringe benefit that the British are enjoying arises from their historical close relationship with India. As the Indian economy is now booming, England stands to gain from that relationship.

A subject that is producing long faces on both sides of the channel is the price of oil and energy. Prior to the American invasion of Iraq, the French had an inside track on obtaining Iraqi oil. That obviously has been foreclosed. Like the rest of the world, they are forced into the market with oil in excess of $70 a barrel.

The difference in these two country's economies is also manifested by the large number of British people who are purchasing second homes in France. This has produced a lot of grumbling on the part of the French who claim that the British are attempting to retake Southwest France, which they once controlled during the Middle Ages. It's the Norman conquest in reverse.

As all of these developments proceed, there is a risk of increased tension between England and France. This would be unfortunate because both countries face so many similar problems including the threat of further terrorist attacks, increased energy costs and the rising power of unpredictable new Russian force on the east. Condoleezza Rice can and should take the initiative and attempt to forge common positions among England, France, Germany and the United States. If she succeeded, this could have a beneficial effect on our situation in Iraq.