Thursday, June 26, 2025

"Vicious Circle": Immigration Is Costing France 3.4% Of Its GDP

A report by the Observatory of Immigration and Demography (OID) claims that immigration has not brought the promised economic benefits to France and may even harm the economy. The report suggests that immigration costs France about 3. 4 percent of its GDP due to a disparity between the taxes immigrants pay and the services they use. Taxes from immigrants only cover 86 percent of their fiscal costs, leading to a budget deficit. Low employment rates among immigrants, at 62. 4 percent, are a primary reason for this imbalance, compared to a 69. 5 percent employment rate for French natives.

Director Nicolas Pouvreau-Monti explains that the current immigration model perpetuates problems in employment and public finances. He argues for a broader approach than just addressing short-term labor needs in sectors like hospitality and construction. Pouvreau-Monti criticizes the system for bringing in mostly low-skilled workers instead of those who could drive innovation, which increases tax burdens on businesses and impedes economic growth.

Family reunification is identified as a major factor in France's immigration, often prioritizing familial connections over professional qualifications. This difficulty in integration affects not only immigrants but their children as well, with 24 percent of young individuals of immigrant parents being NEET (not in employment, education, or training). The report links this failure to integrate to growing ethnic segregation and sectarianism in France and Belgium. The skepticism regarding immigration's economic benefits is echoed across Europe, including recent comments by British Labour Prime Minister Sir Keir Starmer, who warned that unchecked immigration could lead to significant societal divides.

https://www.zerohedge.com/markets/immigration-costing-france-34-its-gdp 

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