Report
If we are serious, we have to admit that there is very limited economic policy leeway in France
Instead of harbouring false illusions, it would be better to explain to the French people that in reality, there is very limited economic policy leeway in France: Wages are rising faster than productivity, the minimum wage is very high relative to the median wage; The fiscal deficit is already higher than the one that ensures fiscal solvency; Social welfare spending and , as a result, the tax burden on companies is already markedly higher than in other euro-zone countries; Capital income taxation remains higher than in the major OECD countries as a whole. In an open world, with cost competition between countries and free movement of capital, the only way to create new economic policy leeway is through reforms that increase employment, productivity and potential GDP.
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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.
Patrick Artus
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