Report
Patrick Artus

France: What can be done in the short term to help those on the lowest incomes?

In France, where income distribution is skewed in favour of wage earners, productivity gains and labour force skills are low, the fiscal deficit is high and public spending is hard to reduce in the short term, what can be done in the short term to help those on the lowest incomes? Raise the retirement age and use the public fina nces freed up to increase the various transfers paid to low-income people; Change urban planning rules ( more densification in city centre s ) to drive down real estate prices; Use future fiscal leeway to increase transfers paid to the lowest-income earners and announce that this is going to happen . The French government has opted to take a different path by immediately increasing transfer payments and allowing the fiscal deficit to increase.
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

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