France: The existence of a supply-side problem cannot be denied

Left-wing parties in France unambiguously defend the idea that more production and employment in France can only be obtained by stimulating demand. Demand could be stimulated by significantly increasing low wages or the minimum wage, given low-income households’ high propensity to consume. The same left-wing parties reject outright the existence of supply-side constraints and the need to conduct supply-side policies. They are therefore critical of the reforms of the labour market, taxation and vocational training carried out over the past five years. But if one is honest, the existence of a supply-side problem in France cannot be denied. First, this concerns the labour market, and then the capacity of the productive system to meet demand.