Report
Patrick Artus

It will be difficult for Macron to diffuse France’s crisis

A majority of French people are demanding: Wage increases, in particular for low wages; More public services; Tax cuts, except for the “rich”; An increase in the lowest pensions, without raising the retirement age. What can Emmanuel Macron do, other than reject these demands? Increasing low wages would sharply reduce low-skilled employment; An across-the-board increase in wages would reduce France’s cost competitiveness, which is already poor; Hiking tax on capital income after having reduced it a year ago would have disastrous actual and perceived effects; The only way to free up so me fiscal leeway (in order to reduce taxes, increase some social spending items, increase the lowest pensions) would be to raise the retirement age, which is overwhelmingly rejected. What will happen if none of these demands made by the majority of French people can be reasonably met ?
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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