Is France mortgaging the future to prop up the present?

There is reason to fear that France’s stimulus of demand in the short term is taking place at the expense of the future : Growth in real wages has outpaced that in productivity, which boosts household demand in the short term but erodes the competitiveness and profitability of French companies; The higher fiscal deficit finances transfer payments to households and tax cuts but increases the public debt, which will lead to a more restrictive fiscal policy in the future, especially if interest rates rise; Job creation is vigorous, which is stimulating household demand, but these jobs have a low level of productivity, which pushes down aggregate productivity gains and potential growth.