Report
Patrick Artus

How can offshoring be prevented in France?

The case of the Bridgestone plant in Béthune has revived the debate on offshoring in France. Offshoring in France started more than 20 years ago, and is linked to a fundamental cause: France's low attractiveness (high labour costs, high tax pressure on companies, low labour force skills). How can offshoring be prevented? Trying to prevent them (through regulations, subsidies, public aid) is hopeless as long as the root causes are present: there would need to be a considerable permanent level of subsidies or regulation that would reduce the attractiveness even further; The only constructive solution is: In the short term, to make it easier to transfer jobs from companies that offshore to those that create jobs; In the medium term, to correct the root causes of offshoring: lowering corporate taxes, reforming the education and vocational training system.
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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