Report
Patrick Artus

Is France a country of "financial capitalism"?

We seek to determine whether France has the characteristics of a country of financial capitalism. These characteristics (that are visible for example in the United States) are as follows: Income distribution at the expense of employees leads to very high profitability; Companies use debt leverage to increase the return on equity and finance share buybacks; Low social welfare spending makes it possible to have a low corporate low tax burden; The adjustment of employment during recessions is drastic in order to maintain corporate profitability. None of these characteristics appears in France: France is therefore not a country of "financial capitalism", contrary to numerous claims.
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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