Since 1995, France's total debt has increased by a whopping 150 percent of GDP to reach a historic high of about 365 percent of GDP in 2018.
As a result, France's current account moved into deficit and its external debt surged from 100 percent of GDP in 2004 to 180 percent of GDP in 2018.
Public spending grew relentlessly, from only 10 percent of GDP at the beginning of the twentieth century to 57 percent of GDP in 2019, the highest level among Organisation of Economic Co-operation and Development countries.
According to the International Monetary Fund, France has built a huge welfare state by spending about 24 percent of GDP on social payout programs, due to very generous pensions, unemployment benefits, rent subsidies, and family and child allowances.
France also spends about 8 percent of GDP on a practically fully socialized health sector and nearly 6 percent of GDP on education, again more than peers, but with less favorable outcomes.
At about 35 percent, France has the highest statutory corporate income tax rate in the OECD. Social contributions collected from employers are the highest in the EU at about 12 percent of GDP. This fuels capital outflows and unemployment, reinforcing the vicious circle between anemic growth and debt accumulation.
France would need to convince all the other EU members to turn protectionist, including the more competitive ones, which may be almost impossible.
https://mises.org/wire/facing-economic-disaster-france-turns-against-globalism
As a result, France's current account moved into deficit and its external debt surged from 100 percent of GDP in 2004 to 180 percent of GDP in 2018.
Public spending grew relentlessly, from only 10 percent of GDP at the beginning of the twentieth century to 57 percent of GDP in 2019, the highest level among Organisation of Economic Co-operation and Development countries.
According to the International Monetary Fund, France has built a huge welfare state by spending about 24 percent of GDP on social payout programs, due to very generous pensions, unemployment benefits, rent subsidies, and family and child allowances.
France also spends about 8 percent of GDP on a practically fully socialized health sector and nearly 6 percent of GDP on education, again more than peers, but with less favorable outcomes.
At about 35 percent, France has the highest statutory corporate income tax rate in the OECD. Social contributions collected from employers are the highest in the EU at about 12 percent of GDP. This fuels capital outflows and unemployment, reinforcing the vicious circle between anemic growth and debt accumulation.
France would need to convince all the other EU members to turn protectionist, including the more competitive ones, which may be almost impossible.
https://mises.org/wire/facing-economic-disaster-france-turns-against-globalism
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