France: We should be under no illusions, it will take a long time to fix the economy

Despite the considerable short-term stimulation of demand and all the reforms implemented since 2017, we should be under no illusions : it will take a very long time to fix the French economy . The reason is that structural problems that have been present for a long time will have to be corrected: Insufficient corporate modernisation, which has led to low productivity gains and a cost competitiveness problem and hence deindustrialisation; The inefficient education system, the result being that many young people are unemployable, driving up the structural unemployment rate while exacerbating the low level of labour force skills; The low employment rate, linked to the low skill level, which reduces the level of potential GDP and tax revenues while leading to fragile public finances and high income inequality before redistribution.