Is the new National Assembly in France ready to accept supply-side policies?
In France, it is not possible to pursue only demand-stimulating policies (support for household purchasing power, wage increases, increased public investment, etc.). France is also clearly suffering from supply problems: Recruitment difficulties of companies, linked to the mismatch at sector level between labour supply and demand; Inability of manufacturing industry to meet demand, leading to a sharp deterioration in industrial foreign trade; Abnormally high structural unemployment, which reveals low labour force skills. These supply-side problems must be solved through policies of skills improvement, cuts in taxes that hamper employment and industry, and incentives to take jobs in sectors where hiring difficulties are very intense. The new National Assembly should not focus solely on stimulating demand.