Report
Patrick Artus

France: Can the COVID crisis help reform the country?

It is possible that the COVID crisis will help reform France by clearly revealing France's structural problems, and therefore by providing greater incentive to fight them. These structural problems are well known: Low attractiveness for companies (high labour costs and tax burden), which leads companies to offshore to restore their profitability after the crisis; Government inefficiency despite the high level of public spending, which we have clearly seen with hospitals; Low labour force skills, which also contributes to the low attractiveness, and starts with the inefficiency of the education system; low efficiency of the vocational training system, which will nevertheless have to retrain employees losing their jobs in troubled sectors; Excessive centralisation of economic and social decisions (due to the weak social dialogue in companies linked to the weakness of trade unions, and the diversity of situations in the labour market), regulations and health regulations; Low number of well-performing business sectors, which is shown by the fact that three sectors that performed well before the crisis (aeronautics, luxury goods, pharmaceuticals, agri-food, tourism) are severely affected by the crisis, and that only two sectors therefore remain.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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