Report
Patrick Artus

Why is public spending in France higher in relation to GDP than in Germany or the euro zone as a whole excluding France?

Public spending as a percentage of GDP is higher in France than in Germany or the euro zone excluding France. What accounts for this situation? The low employment rate, and therefore the low level of GDP and tax revenues? Higher public spending on healthcare, education, families, housing, business grants and the military in France (as a percentage of GDP)? Higher public spending on pensions, either because of the number of pensioners per employee, or because of the retirement age, or because of the generosity of the pension system? We see that the higher weight of public spending in GDP in France is explained by: When France is compared with Germany, the low employment rate; The high level of spending on healthcare, education, families and the military; Higher public spending on pensions in France due to the low employment rate among those aged 60 to 69 and the very generous pension system.
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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