Why is demand stimulation ineffective in France?

Additional stimulation of demand (of the traditional, Keynesian type) is in principle difficult to implement in France, given the income distribution in favour of wage earners and the very high level of the fiscal deficit. In addition, it may be ineffective for several reasons: The rigidity of the supply of goods and services (recruitment problems, insufficient equity, limited capital modernisation) which leads to a strong propensity to import; Households' strong propensity to save. The choice of recovery plan in France, i.e. a plan focusing on modernising the economy but not on stimulating demand is therefore a good choice. Moreover, modernising the economy also ultimately leads to stimulation of demand.