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France’s fiscal watchdog disagrees: it calculates that, in reality, 70% of deficit reduction will come via new taxes. Tax hikes have been a red line during Macron’s presidency, but now that legacy risks being squandered. Equivalent to 1.2% of GDP, the planned retrenchment risks sinking an already “precarious recovery”. Growth is projected to hit just 1.1% next year, a far cry from the 5% figure France enjoyed during the post-1945 years of the Trente Glorieuses, or even the pre-financial-crisis norm of more than 2%, says Jean-Marc Vittori in Les Echos. Since 2008, growth has averaged a mere 0.9%. France hasn’t endured such a prolonged peacetime slump in living standards since the 19th century. After the economic “roller-coaster” of the pandemic and Ukraine, the French economy has returned to its baseline condition: “gloom”.
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Source link : https://moneyweek.com/economy/eu-economy/how-does-frances-economy-compare-to-rest-of-europe
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Publish date : 2024-10-18 14:31:00
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