France

The recent elections in the EU, the UK, and France; what impact are the results likely to have on financial and monetary policy? Before these elections, mainstream commentators worried that…

Cars are bad. More cars mean more accidents, pollution, climate change and congestion. Less cars are the way to go, whatever it takes. Or so the story goes. In 1999…

Introduction The European Stability Mechanism (ESM) backstops the euro. Its nominal size is €705 billion but its lending capacity is lower at €500 billion, and the main condition attached to…

Ratings Agencies take notice of deteriorating finances Debt ratings agencies may not have the power they used to possess before the 2008 global financial crisis, but they still carry influence.…

France hosted in the November 15th week a summit dedicated to the “Fight Against Youth Unemployment.” This is an excellent initiative for a country where the 16-25 years-old population reached a 26.1 % unemployment rate. Yet, France should be doing what is being done elsewhere, especially in Germany, where the rate of youth unemployment is three times lower than in France: 7.7 %.

Between 3 and 5 per cent of the members of Parliament, and 6 per cent of the senators: the parliamentarians with a background in business represent a tiny minority. An IREF study shows the contrast with four other countries where economic legislation is handled by people who know what it means. In France, the elected representatives are chiefly interested in tax money.

By Alexandre Diehl, Lawyer and IREF research Fellow

For the past few weeks, and as Google has announced “bad” results on the financial markets, the media are gurgling with strange and technical news on a possible tax audit for the company. What is going on? Has Google broken the law, or are the French yet again attacking a success story out of envy? Has the government found another cash-cow?

By Nicolas Lecaussin

In France the national economy and the fate of thousands of employees are regularly linked to the grand “social conference”. Successive presidents have paid tribute to the ritual of “social dialogue”. Nicolas Sarkozy did so several times during his presidency with well-known results: the unions firmly opposed the timid attempts at reform and finally called for a vote for the socialist candidate in May 2012. François Hollande enthusiastically followed suit by imposing a two-day “grand social conference” in July 2012.

A petition was submitted by French MPs to the Constitutional Council regarding the limitation on the wealth tax and the new regulations which were to take into account “virtual” incomes.

On 28 November 2012, IREF and the French Taxpayers Association addressed an argumentary (see attachment in French) to the members of the National Assembly, urging them to seize the Constitutional Council in this matter. The MPs replied favourably and passed on the request to the Constitutional Council on 20 December.

By Nicolas Lecaussin

The French government recently announced the creation of 100 000 green jobs over the next three years. The goal is of course to stem rising unemployment. However, the tangible results of creating green jobs in several countries, as well as the real costs of these jobs, should have given food for thought before taking action.

In France, an IREF study (“Les mythes des emplois verts”) published in early 2011 showed that the term is ambiguous and calculated the real cost of a green job, based on official reports. The definition of green jobs is rather vague, although there is an official handbook on green growth (“Focus on 50 professions for green growth”). Among these, most already exist (gardeners, sewermen, cleaners, geologists …). Others seem to come straight out of a vaudeville: nature discovery guide, eco-museum guide, eco-interpreter, nature guide…