The new 36 year-old French Economic Minister Emmanuel Macron, during his speech at the transition of power ceremony referred to the French economy as "sick". The unemployment rate is at a record high of 10% and there has been no growth in GDP over the last 2 quarters. This is worrying not only for the French but for the European Union too as France is Europe's second largest economy.
Other than the unimpressive economic performance, the French have to reduce their public deficit from 4.4% of GDP to 3% by 2015 as promised to the European Union. According to the current situation in the country economically and politically, France has gone back on its promise and the deadline has now been extended to 2017.
The policies that have been put forward in response to the economic crisis include tax breaks to businesses worth 40 Billion Euros to encourage investment and 50 Billion Euros in Public Spending cuts to reduce the GDP to debt ratio.
Click here for the full article at Business Insider : http://ow.ly/BKJ5v
Other than the unimpressive economic performance, the French have to reduce their public deficit from 4.4% of GDP to 3% by 2015 as promised to the European Union. According to the current situation in the country economically and politically, France has gone back on its promise and the deadline has now been extended to 2017.
The policies that have been put forward in response to the economic crisis include tax breaks to businesses worth 40 Billion Euros to encourage investment and 50 Billion Euros in Public Spending cuts to reduce the GDP to debt ratio.
Click here for the full article at Business Insider : http://ow.ly/BKJ5v
This is major problem for Europe especially for the second largest economy of Europe. France's inability to raise their GDP is alarming especially if the eurozone wishes to improve and get to pre recession levels. The political factors of France could be facilitating this poor GDP level which isn't accounted for in the numbers.
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