France’s fundamental macroeconomic problem

To analyse the economic policies needed in France, we must start from France's fundamental macroeconomic problem: The need for investment will be very substantial for the energy transition, for corporate modernisation, for the industries of the future and for healthcare; But income generation is low, as shown by the low employment rate and the external deficit; with low income generation, it is difficult to invest much: the tax base and tax revenues are low, leading to a problem in financing public investments; savings are low, leading to a difficulty in financing private investments. The necessary economic policies 1 must therefore have as their objective to restore income generation, which also provides many other positive effects: improving skills and restoring the employment rate (with positive effects also on inequality), making it easier for young people to enter the labour market, reindustrialisation and creation of "good jobs" (due to the positive effect on purchasing power and social mobility), government reform to transfer more resources to public investment, fight against inefficient uses of savings (asset price bubbles), use of European investment funds (Next Generation EU). 1 For a more in-depth analysis , see The major economic issues for debate in the French presidential campaign .