European Union, France 2030, investment plan, project, limits, state of the French economy, covid-10, health crisis, employment rate, European Union average, Emmanuel Macron, OFCE French Observatory of the economic situation, inflation rate, IMF International Monetary Fund, World Bank, Minister of Economy and Finance, France Relaunch, Treaty on the Functioning of the European Union, Republicans
In 2020, the health crisis caused a recession of -7.9% for France. France had a fairly stable economy before the crisis and the various confinements led to a negative evolution of the economy as well as a recession in GDP. The French economy is growing little but resisting the crisis. For example, in 2020 France was 23rd in GDP per capita in parity by purchasing power, which is slightly above the European Union, and it therefore ranks tenth as an economic power, France above all has a service economy with a lot of jobs in the tertiary sector (76.7% of the active population in 2015). On the other hand, France has an employment rate of 65.1% in 2020, below the European Union average of 67.5%. Since the beginning of 2020, the COVID 19 health crisis has created a global economic situation and we will therefore ask ourselves, what future for the French economy after this crisis?
[...] In addition, there is a risk of inflation if States finance themselves with monetary creation even if it is in their interest to do so. The investments made as part of the recovery plan must therefore be effective in order to create sufficient economic growth. For example,the chairman of the finance committee of the National Assembly, Eric Woerth fears that the plan will have serious consequences for public finances:"How is the country going to pay? Is the recovery not an economic and social time bomb, because we are going into debt like crazy? ยป. [...]
[...] To conclude, this investment plan aims for a profound change in the functioning of our economy, only the vision of it is that of the current government and this is the subject of many debates . The possible limits of this "France 2030" project This investment plan may, however, have possible limitations. If we want this program to be effective, public spending must be allocated to targeted public and private investments, and for job creation to be sustainable, these investments must be maintained. One of pillars of France Relance is competitiveness, the reconquest of French industry. [...]
[...] He would also have liked the recovery plan to focus on the most affected sectors, such as hotels and restaurants, and he also regrets that this recovery plan is notnot carried more by the public sector. It advocates direct public investment rather than support for private investment. In addition, the other political figures consider the recovery plan "too late", they denounced, the"shortcomings" of the French recovery plan presented by the government. On the side of Europe Ecologie-Les Verts (EELV), Julien Bayou, its national secretary, criticized a"old-fashioned recovery plan" of which the 30 billion euros for ecology are only one"punctual and clearly insufficient investment". [...]
[...] The concern of electric vehicles, as we know, are the batteries which are difficult to recycle and which consume precious resources such as rare earths. At the moment, we can see shortages affecting the French and European automotive market, this is the consequence of a dependence on China. The plan also provides 2 billion euros for healthy, sustainable and traceable food, which is difficult to apply in the EU since the common agricultural policy (CAP) is "to increase the productivity of agriculture" according to article 38 and 39 of the Treaty on the Functioning of the European Union (TFEU), which encourages intensive agriculture. [...]
[...] Thus, the French government wants this investment to be able to boost economic growth but at the same time take advantage of this to prepare for a profound change in the national economy. For this axes are declinedin France RELAUNCH" : ecology and energy transition, business competitiveness and territorial cohesion. Firstly, in the context of accelerating global warming, France wishes to adopt an ecological approach in favor of the planet, which refers to the objectives of the 2015 Paris Conference on climate change (COP21), which aimed to limit the increase in global warming to 1.5 to 2 degrees by billion euros are then earmarked for this first part of the plan. [...]
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