France: There will be no industrial reshoring without structural reforms

T here is increasing talk in France of the need to reshore industries. But it is important to not get carried away: large-scale reshoring will not happen in France spontaneously. The government can of course decide to forever subsidise some industrial production so that it takes place in France; but beyond such cases, which would inevitably be limited, one should not expect to see reshoring in France, given: France’s l ow labour force skills; Its high level of labour costs and corporate taxes, leading companies to prefer to produce in other locations; H igher consumer prices for production that has been reshored . This means that structural reforms (improvement in skills, corporate tax cuts ) are a prerequisite to any reshoring in France.