There will be no fiscal leeway or reduced inequality in France unless skills are improved and the employment rate is increased
The level of public spending is very high in France, and this spending must be reduced to be able to reduce the tax burden. When comparing France and the other euro-zone countries, we see that the higher weight of public spending in France is primarily explained by pensions and support to companies; but it will be difficult to reduce these types of spending. Furthermore, income inequality in France is not due to the highest incomes as in other countries , but to low incomes , given the high unemployment and the difficulties in gaining access to employment. Primary income inequality is very high in France, and is corrected by large-scale redistributive policies, which requires a high tax burden - particularly on companies - and helps weaken employment . This is a formidable vicious circle. To provide France with renewed fiscal leeway and to reduce primary income inequality (before redistribution), there is a single robust solution: increasing the employment rate, leading to an increase in income and tax revenues and therefore to a fall in poverty, which in particular requires an improvement in labour force skills in France.