Report
France: We must accept the idea that the state is now destroying potential growth
In the aftermath of the COVID crisis, there are frequent c alls for more state involvement: more public spending on healthcare and education; a greater role for the government in helping to develop strategic sectors; an extension of the social welfare "safety net" to all economic agents. But the paradox is that in France, the state is now destroying potential growth: Despite the high level of public spending, the quality of the healthcare and education systems is low; The tax burden on companies is high, mainly to finance a very generous pension system and large-scale redistributive policies, and this reduces the employment rate; General government productivity is low. It is therefore not more state that is needed in France, but a different state: one with a strategic vision, but that becomes effective and productive and no longer generates job-destroying tax distortions.
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Natixis
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Patrick Artus
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