France’s four most serious economic policy problems today

France’s new government will face four serious economic policy problems, which it will have to address : Low skills among young people and adults result in a structurally low employment rate and therefore to forgone income and tax revenues; The energy transition will require a sharp increase in the investment rate and therefore a concomitant significant fall in consumption. It will exacerbate inequality and the problem of low skills; A choice will have to be made as to which economic agent (the government, wage earners, companies) will bear the imported inflation shock; Fiscal policy will face new constraints, given the rise in real interest rates, which will make it very difficult to continue the policy of increasing public spending across the board and supporting purchasing power.