Report
Patrick Artus

France: How is it possible to save manufacturing industry?

It is necessary to maintain a large-scale industry: this prevents a downgrading of jobs, keeps jobs at a high level of productivity and wages, and avoids dependence on foreign producers of industrial goods. But the environment for keeping a large-scale industry in France is negative. T he global economy is becoming a service economy, and overall, global demand for industrial products is stagnating : this means that cos t and tax competition is strong , which obviously hurts France where production costs are high and taxation is heavy. Moreover, the energy transition will lead to further destruction of manufacturing job s , for example in the automotive sector due to the shift to electric cars. What can France do? Public opinion would not accept lowering manufacturing wages, and there is no more leeway for cutting corporate taxes in France. The only solution seems to be to develop industries of the future in France: energy storage (hydrogen), solid state electric batteries, smart grids, etc.
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

Other Reports from Natixis

ResearchPool Subscriptions

Get the most out of your insights

Get in touch