Report
Patrick Artus

The social crisis in France cannot be solved by fiscal deficits alone

The French government has reacted to the social crisis by using a fiscal deficit (household tax cuts, increase in government transfer payments), and this strategy will probably be amplified in the future (with higher government spending on healthcare, education, decentralisation of public services, transport, the police and the judiciary, etc.). We believe this reaction to the social crisis in France, by using the fiscal deficit, cannot be sufficient to solve the social crisis, which is also explained by: The rise in real estate prices, the rise in the cost of housing and the distance between home and workplace; The reduction in social mobility, due to the disappearance of intermediate (industrial) jobs and the social immobility created by the education system in France; The rejection of inequality, which is linked to the lack of social mobility .
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

ResearchPool Subscriptions

Get the most out of your insights

Get in touch