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11th December 2018 French Budget For Next Year At Greater Risk Of Non Compliance By European Union EU

One partially hidden aspect of the current protests in France threatens the existence of the EU. As the French government struggles to manage the risks from the leaderless protests on the streets of France it is potentially exposing itself to financial penalties that Italy currently threatened with.

French President Emmanuel Macron is promising monetary expansion in response to growing complaints from the less well off in France that the government is not helping them to live a lifestyle they expect.

The European Commission EC is monitoring the french budget plans to analyse the impact of borrowing more money to pump into the French economy. New fiscal measures to be introduced by the French government will potentially break EU rules in the same way Italys budget breaks EU rules. Italy have been told by the EU that its budget plans for 2019 are not acceptable and if Italy does not change the budget it will be fined by EU.

French President Emmanuel Macron has pledged to cut taxes for pensioners and raise the minimum wage in January 2019 after a wave of protests against him.

Under EU fiscal rules France was required to reduce its 2019 structural deficit by 0.6 percent of gross domestic product. Cutting taxes for pensioners and raising the minimum wage could potentially make the french deficit bigger than allowed under EU rules.

France has only committed to reducing its deficit by 0.2 percent not 0.6 percent. Making promises to placate protesters in 2019 that would result in missing this partial compliance with EU rules exposes France to fines. Claims that Frances 2019 budget deficit problems is different from Italys 2019 budget deficit problems do not stand up. The main difference is France has more political and economic firepower than Italy. As Greece found out the EU rules are applied differently to different countries.

Italys government just got a political boost from the protests on the streets of Paris.

It can point with justification to the double standards of the bureaucrats running the EU. However Italy is likely to get crumbs from the EU table whilst France gets EU budget monitoring.

20th November 2018 France Unemployment Rate Remains At 9.1 Percent

According to INSEE statistics agency confirmed that Frances unemployment rate stuck at 9.1 percent in the three months to September.

31st August 2018 France Inflation Steady At 2.6 Percent

According to the INSEE statistics agency inflation in France has stuck at 2.6 percent in August.

16th June 2018 France Corporate Law Changes

Frances finance minister says France will cut corporate red tape to free up french businesses. In addition the french government will make money easier to get for businesses in France to invest in their future.

23rd May 2018 French Unemployment Rises

French unemployment rose in the first quarter according to national statistics office INSEE. The ILO jobless rate in France rose to 9.2 percent in first quarter up from 9.0 percent in the last quarter of 2017.

10th April 2018 France To Cut Debt Faster

French government took more income in tax than expected. Extra tax income from faster global economic expansion is bonus. France intends to use windfall to pay down debt faster. It will cut its budget deficit faster.

French economy is now forecast to grow faster at 2 percent. As a result the budget deficit will be 2.3 percent not 2.6 percent. Undershooting budget deficit gives government more money than planned.

3rd April 2018 France Manufacturing Growth Slows In March

French manufacturing grew in March at the slowest pace in a year according to IHS Markit Purchasing Managers Index.

26th March 2018 French Deficit Below 3 Percent Of GDP

France has lowered its annual public deficit below the European Union’s EU 3 percent limit for the first time in a decade. It could have complied this key EU limit by reducing public sector spending but chose to defy the EU rules for a decade.

Not sure other smaller less powerful EU economies would have been allowed to defy the EU rules for so long? Weaker southern Eurozone countries should be more worried about changes France and Germany could bring in soon to control what is perceived in the north of Europe has reckless overspending not that France is no longer recklessly overspending.

France’s public spending deficit was 2.6 percent GDP in 2017 its best compliance since 2007. Much of the improvement in France’s performance is actually down to global economic growth bringing in higher tax receipts rather than significant cuts in public spending. They say its better to be a lucky politician than a competent one.

20th March 2018 French Government Wants To Encourage People Into Work With Penalties For Not Looking For Job

The French government plans to tighten controls of the unemployed and increase penalties against those people who don’t look for a job hard enough.

Jobseekers in France will be monitored more over the coming years and if they don’t work hard at finding a job they will be punished. The French government wants to make unemployment benefits fairer and more efficient.

8th March 2018 France May Boost Public Sector Spending

Joel Giraud who is in charge of steering new budget legislation through the lower house of parliament told Les Echos newspaper that Frances budget deficit was likely to come in at 2.7 percent of GDP compared to government target of 2.9 percent of GDP. If this is the case it will mean France has room to spend more in the public sector.

Much of this good news is down to faster economic growth rather than France getting to grip with its debt and borrowing.

27th February 2018 Frances Banque Postale To Launch Online Bank 2019

French state owned Banque Postale part of the French postal service, plans to launch an online bank in spring of 2019. French consumers and businesses will be able to access account’s via mobile phone or post office.

15th February 2018 – French Unemployment Falls Below 9 percent

France’s unemployment rate fell below 9 percent for first time since 2009.   France’s unemployment rate fell to 8.9 percent in the fourth quarter of 2017, from 9.6 percent in the third quarter, according to national statistics office INSEE.

13th February 2018 French Job Growth Returns To Pre-Financial Crisis Levels

According to the INSEE statistics agency employment growth has now returned to levels not seen since before the financial crisis 2007 2008.

Although job creation in France has increased unemployment has not not dropped below 9 percent for 6 years.

30th January 2018 France Strongest Annual Growth Since 2011

France’s economy grew 1.9 percent in 2017.

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