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Posts Tagged ‘French economy’

Commerce on dimanche: Should France expand Sunday store hours?

February 13th, 2015 No comments

Bonjour! I hope your new year is off to a great start.

As many veteran and new expats alike know, stores and shops in France tend to be closed or have limited hours on Sundays – especially outside of big cities. How many times have you needed groceries after 7pm on Sunday only to have to wait until Monday? This is not the experience in all stores – but it is often the case outside of Paris.

According to The Washington Post, France is currently debating whether or not to increase the number of Sundays shops can be open per year.

It is perhaps a surprising move from the French Socialist Party, but not as surprising knowing that the French presidential cabinet has appointed in recent months more conservative, business-friendly ministers like Macron who are cozying up to capitalism.

What are your thoughts? Feel free to share and post comments!

Bon weekend à tous !

France may finally allow more shops to open on Sunday
By Rick Noack
February 12, 2015

Baker Stéphane Cazenave is said to produce France’s best baguettes. However, according to French law, he can only produce those baguettes six days a week.

Cazenave had ignored that rule because demand for his baguettes was so high that he was able to employ 22 people seven days a week. Instead of being applauded, Cazenave now faces a lawsuit. “People see me like a thug just because I asked to work,” he told France Television. “Working shouldn’t be a crime in France.”

It might seem strange to Americans, but French businesses are often closed on Sundays in most parts of the country and are only allowed to open five times a year that day. Despite the French tradition of separating religion and state, labor unions and Catholic lobbies have so far succeeded in defending Sunday as a sacred ‘day of rest’ for the entire country.

This, however, could change. To many French, the current debate about allowing more businesses to open on Sundays is of a fundamental nature: Should the country become more commercial and capitalistic?

French President François Hollande believes so. He shocked many when he recently announced he would pursue a law known under the name of France’s economy minister Emmanuel Macron. The initiative aims to liberalize the country’s bureaucratic economy. For Hollande, a lot is at stake: Having so far been unable to decrease unemployment and boost growth, his popularity has sunk dramatically.

The law — pursued by a leftist Socialist Party government — is supposed to end a variety of monopolies and allow more competition, but its most contentious proposal is to allow stores and businesses to open more often. According to the draft, they could soon operate on 12 instead of five Sundays a year. Cities could decide on their own whether they would implement the rule, and there are exceptions in areas, such as in Paris.

One of the 2012 election promises of Hollande had been to keep Sunday a day of rest. Hence, breaking with this promise has been interpreted by some in France as a sign of governmental despair with an uncertain economic impact.

Critics are outraged. “It is a moment of truth speaking to the one question that truly matters: What kind of society do we want to live in?” former French employment minister Martine Aubry asked in an op-ed in Le Monde in December.

“Does the political left have nothing else to offer as a societal model than a Sunday stroll to the mall and the accumulation of consumer goods? Sunday should be a time set aside for oneself and for others,” Aubry argued.

Without actually naming it, Aubry implied what she did not want France to become: a country with a 7-days a week consumption culture as it is common in the United States. France is not the only country in which shopping is limited on Sundays: Germany, for instance, has upheld similar regulations.

When France’s economy surprisingly started to grow slightly at the end of 2014, it was mainly due to domestic consumption. Allowing consumers to spend money seven days a week instead of only six could boost the country’s outlook, some said.

Others, however, are more skeptical. “The bill is a ‘catch-all’ text that does not address France’s serious structural issues,” Emmanuel Martin, Director of the Paris-based Institute for Economic Studies-Europe, told The Washington Post. “France’s issues are structural: a bloated government administration both at the central and local level which generates inefficient regulations, inefficient spending and of course then, higher growth-killing taxation.”

Even though Martin is not convinced of the law, he acknowledged it does sometimes feel like something from another era. “For sure, it feels weird to see shops closed in a major shopping street of Paris — one the most beautiful cities of the world,” Martin said.

NYT: How France is confronting change

August 27th, 2013 2 comments

The New York Times had a piece the other day talking about the French economy and political system and its confrontation with social realities. “A Proud Nation Ponders How to Halt Its Slow Decline”.

This is certainly not a new theme. Indeed, in my travels and living in France, I often heard the refrain “France changes not by evolution, but by revolution.” It echoes perhaps true today, with a political system that sees its citizens protest in the streets in an attempt to get their voices heard – it’s the French equivalent of citizen lobbying and activism that can come off as much more noticeable than activist efforts through citizen groups like NGO’s in the US.

It’s an insightful read, no matter where you stand in the political spectrum.

Here are the first few excerpts:

The New York Times
Steven Erlanger
August 24, 2013
Memo from France – A Proud Nation Ponders How to Halt Its Slow Decline

“For decades, Europeans have agonized over the power and role of Germany — the so-called German question — given its importance to European stability and prosperity.

Today, however, Europe is talking about “the French question”: can the Socialist government of President François Hollande pull France out of its slow decline and prevent it from slipping permanently into Europe’s second tier?

At stake is whether a social democratic system that for decades prided itself on being the model for providing a stable and high standard of living for its citizens can survive the combination of globalization, an aging population and the acute fiscal shocks of recent years…”

The Economist’s France 14-page special report

November 19th, 2012 3 comments

The Economist this week has a 14-page special report this week in its print edition that focuses on France, from its economy to politics, under the central theme of how economic structural reform is necessary in order to avoid a “time bomb” going off at the heart of the Eurozone. You can access the Nov. 17, 2012 print edition contents here. The leader article introducing the special report is here, and the special report link can be found at the table of contents site under “Special report: France” (there are 8 articles).

I’m delving into all this right now and encourage you to do the same. Even if you don’t agree with the magazine’s analysis, it is a highly-regarded publication for a reason: for asking important questions.

This is the not the first time the British news magazine has waxed poetic about France’s economic woes and potential for growth. Indeed, French economic and business paper Les Echos puts past covers and stories into perspective (in French).

What do you think are France’s biggest problems and do you think Hollande and Ayrault’s government can solve them?

 

French politics, news, economy, wedding coverage…

As you know, I write for Bonjour Paris, and this week I have an article covering many subjects. You can read it here.

Internet as big as energy in France: 3.7% of GDP in 2010 and growing

French financial daily La Tribune reports that the Internet sector contributed to 3.7% of French GDP last year, worth 72 billion euros. It cites a report by McKinsey which states that the sector has created a net total of 700,000 jobs in France in the past 15 years.

At 14% annual growth, the sector should reach 5.5% of GDP by 2015, or 129 billion euros, creating another 450,000 jobs in France.

Moreover, companies that invest in new technologies (web sites, intranets…) have reaped the awards: “for every euro spent, they generated 2 euros in operating margins”, according to McKinsey.

The study was presented by Eric Besson, the French Minister for Industry, Energy and Digital Economy (Ministre de l’Industrie et du numérique) and co-fnanced by Google, which has participated in similar studies in the UK.

You can read the original article here and get a free PDF of the report (in French) here.

France to eliminate tax cap, reform wealth tax

France is unfortunately known for its high taxes. One of the recent fiscal measures, le bouclier fiscal or the tax cap (a.k.a. tax shield) limited all direct income taxes to 50% no matter the income bracket. I wrote about this recently on Bonjour Paris. Those who defended it said it lightened the load of taxes, but those opposed to it reckoned it protected the wealthy while not contributing to reducing the deficit and debt.

Recent debate lead up to today’s decision, announced today by Prime Minister François Fillon, to end the policy. (However, some sort of tax cap will remain in place, at an unspecified percentage, for the less well-off, which make up 52% of the beneficiaries). You can see the French article from Le Point at the link above, and the video from BFM TV below.

Below the video, excerpts from this Wall Street Journal article. Next on the agenda: reforming or abolishing the wealth tax (see more in WSJ and Bonjour Paris articles as well as a detailed report by Le Figaro), which could help as many as 300,000 households pay less tax.

What are your thoughts on these developments?

EUROPE BUSINESS NEWSMARCH 3, 2011, 7:38 A.M. ET
French Prime Minister Says Tax Shield to be Abolished

By WILLIAM HOROBIN

PARIS—French Prime Minister François Fillon Thursday confirmed the government intends to abolish a tax shield that has become a controversial hallmark of Nicolas Sarkozy’s presidency.

Mr. Sarkozy decreased the threshold of the tax shield shortly after coming to power in 2007 so that no taxpayer pays more than half their income in taxes. But his ratings have hit record lows and the tax shield has become a thorn in his side as many voters see it as a measure benefiting the wealthy few.

“We have to face up to reality: the tax shield has been misunderstood, and the crisis has probably made our citizens more sensitive to some of its effects,” Mr. Fillon told a conference, organized to discuss the reform of property and capital taxes that Mr. Sarkozy has promised for the first half of 2011.

The tax shield was designed in part to limit the impact of France’s wealth tax, which Mr. Sarkozy also intends to reform before the presidential elections in May 2012.

The government says it will either do away with the wealth tax completely or significantly modify it. Mr. Fillon said Thursday said the reform will free 300,000 households from the wealth tax.

Yet the government is insisting the reform must have a neutral impact on public finances at a time when France is fighting to rein in deficits. If the wealth tax and the tax shield are abolished, the government will need around €3.2 billion ($4.44 billion) to make up the shortfall.

“We won’t finance this reform with debt. Balancing the budget will be strictly respected,” Mr. Fillon said.

He also ruled out a variety of options that have been suggested in recent months. The government will not tax gains on the sale of main residences, will not reverse its reduction of inheritance tax, and will not introduce an additional tax bracket, Mr. Fillon said.

Mr. Fillon also said the reform of capital and property tax is one of the reforms necessary for greater tax convergence in the euro zone.

European leaders are negotiating a competitiveness pact for members of the euro zone. Some countries have balked at Franco-German proposals that they fear would compromise their sovereignty in sensitive areas like pensions and salaries.

Mr. Fillon said France and Germany should aim to harmonize corporate taxes, starting with the base of these taxes before looking at the rates.

Bonjour Paris article: French & EU economy, Davos…

January 30th, 2011 No comments

I have an article covering a wide array of subjects in this week’s Bonjour Paris. This includes the French economy, Nicolas Sarkozy at Davos, Obama and the French, fashion week, gay marriage in France…You can read it here.

French strikes set for Nov. 23, but don’t expect large turnout

November 22nd, 2010 No comments

The contested pension reform has become French law, but some unions (CFDT, CGT, FSU, Solidaires, Unsacette) and other opponents to the measure are insisting that the strikes must go on. But it likely won’t have any important impact, except for annoying commuters and parents. However, traffic will not be nearly as disrupted as other days. It has been a long road of reform and protest, as France24 writes.

Le Volontaire has a list of strikes organized around France, by départment (and city).

Left-wing newspaper L’Humanité unsurprisingly calls this an “unjust reform” and supports the strikes, with a list of cities participating (similiar to the one above, with some variation). In Paris, the action will start at metro Opéra at noon, pass by la rue du Quatre Septembre, la Bourse des Valeurs, palais Brongniart and finish at place de la Bourse around 2pm.

On the other side of the political spectrum, business newspaper Les Echos (like the French Wall Street Journal) is calling this the “last-ditch stand” (baroud d’honneur) of unions.

According to the SNCF’s site, TGV, Téoz and Intercité trains will not be affected. However, certain regional TER trains could be (look by region). So far the Paris area RATP website is not updated with strike information, but will likely have delays on certain bus lines that go to métro Opéra.

THIS JUST IN: The following bus lines will be interrupted with irregular intervals between about noon and 2pm tomorrow in Paris: 20, 21, 22, 27, 29, 39, 42, 48, 52, 53, 66, 67, 68, 74, 81, 85, 95 and Roissybus. This is especially important for those planning on taking Roissybus from Opera to CDG Airport. If you think this may disrupt your plans, you can opt for RER B at about an equal cost (around 9 euros), or taxis will run you about 35-40 euros. The

For updates on RER suburban line trains, you can see this site. Lyon’s TCL transport system will not be affected. For updates on other cities’ transport systems, you can check this link from a previous strike day. You can check the status of trains in major stations at this site.

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