Transcript Why is France having such Trouble with Its Economy?

Why is France having such
Trouble with Its Economy?
Jorge Seaman
Leo Lee
Wenie Tsai
Wendy Wang
Structure
 1.
France’s current economic situation
 2.
What are the causes of economic
trouble in France?
 3.
What is France’s government doing?
 4.
Final comments
1. France’s current economic
situation
PMI - Comparing the Business Activity in
Euroland ( 50 is a threshold)
expansion territory
France
contraction territory
2. What are the causes of
economic trouble in France?
 (1)
Austerity
 (2)Weak
Consumer and Business
Confidence
 (3)Weak
Competitiveness
(1) Austerity
(1/2)
(1) Austerity (2/2)

Budget Deficit: In mid-2012, French
government debt levels reached €1,833
billion. This debt level was the equivalent of
91% of French GDP

Cuting public spending and increasing taxes.

Pushing back deadline for reducing its budget
deficit to 3 percent of GDP to 2015.

The creation of a strategic public expenditure
council to oversee public spending.
(2)Weak Consumer and Business Confidence
(3)Weak Competitiveness
Main problems perceived by
businesses in France
Examples of France
competitive disadvantages
3. What is France’s
government doing?
Francois Hollande stimulus program
A
‘responsibility pact’ with businesses
that will see cuts to tax and red tape in
exchange for commitments to create
jobs and boost training.
 As part of the pact, employers will no
longer be required to fund family
allowances via payroll taxes from 2017,
reducing the corporate tax burden by
€30bn.
4. Final comments
About Future…
Source: BMI