NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

June 18th, 2015
Business Sweden in Paris

THE PRIORITIES OF FRENCH CONSUMERS HAVE

CHANGED SINCE 2007

SINCE THE FINANCIAL CRISIS CONSUMPTION HAS

ON AVERAGE INCREASED BY 0.5 % PER YEAR,
WHICH IS LOWER THAN THE PRE-CRISIS
CONSUMPTION RATE
THE DISPOSABLE INCOME HAS ON THE OTHER
HAND NOT EVOLVED, PUTTING ADDITIONAL
PRESSURE ON THE FRENCH MIDDLE CLASS, IN
ADDITION TO A HIGH UNEMPLOYMENT RATE

SO CALLED COMMITTED EXPENSES, I.E. TYPES OF

CONTRACTS THAT CANNOT BE RENEGOTIATED IN
THE SHORT TERM, HAS INCREASED FROM 28,8 %
TO 29,3 % IN 2014, AS A PART OF HOUSEHOLDS
TOTAL CONSUMPTION
THE SHARE OF FOOD CONSUMPTION HAS
INCREASED FROM 12.1 TO 12.7 % SINCE 2007, DUE
A RISE OF FOOD PRICES
FRENCH HOUSEHOLDS INVESTMENT DECREASED
BY 3.4 % IN 2014, WHICH COULD BE TRANSLATED
AS GLOOMY PROSPECTS FOR THE FUTURE

SOURCES: 1 & 2
BUSINESS SWEDEN

6/18/15

THE FRENCH GOVERNMENT MEETS INTERNATIONAL

INVESTORS TO DISCUSS FRENCH COMPETITIVENESS

ON TUESDAY 16/06, FRANOIS HOLLANDE

GATHERED SEVERAL MANAGING DIRECTORS
FROM INTERNATIONAL CORPORATIONS TO
DISCUSS THE COMPETITIVENESS OF THE FRENCH
ECONOMY, THE THIRD MEETING SINCE FEBRUARY
2014
The invited guests were summoned to give their view
on advantages and disadvantages on French reforms

Number of international investments in France

608
562

540

515
471

EUROPEAN INDUSTRIAL COMPANIES

REPRESENTATIVES WERE PRESENT, AS WELL AS
COMPANIES FROM EMERGING COUNTRIES AND
THE AMERICAN VENTURE CAPITAL FUND MENLO
VENTURES
The diversity of potential investors demonstrates the
will of the French Government to attract international
investments

THE FRENCH GOVERNMENT HAS IN ADDITION

RECENTLY INTRODUCED THE FRENCH TECH,
ASSISTING FRENCH START-UPS TO DEVELOP
THEIR BUSINESS AND TO FURTHER ATTRACT
FOREIGN VENTURE CAPITAL
SOURCE: 3
BUSINESS SWEDEN

2010

2011

2012

2013

2014

6/18/15

MARKET DEREGULATION CHANGES THE STRUCTURE OF

THE FRENCH ENERGY INDUSTRY

THE FRENCH ENERGY MARKET, HAVING BEEN

PROTECTED FROM COMPETITION, IS CURRENTLY
EXPERIENCING INTENSIFIED IN- AND OUTFLOWS
OF CUSTOMERS

THE MARKET SHARE OF ENGIE (EX-GDF SUEZ),

BEING THE BIGGEST PLAYER ON THE MARKET, IS
SHRINKING:
1,5 million household customers have changed
energy supplier the last five years
Engie now supplies gas to 82 % of 11 million French
households consuming French gas
The market share among professionals has
plummeted from 75 % to 42 % in 2015

THE COMPETITION HAS INTENSIFIED, DUE TO A

DEREGULATION OF TARIFFS
ENGIE has as a response cut its costs by 15 %

SOURCE: 4
BUSINESS SWEDEN

*ENGIE MARKET SHARE

6/18/15

MANUEL VALLS USES THE ARTICLE 49.3 TO ONCE MORE

OVERRIDE THE FRENCH PARLIAMENT
AFTER 437 HOURS OF DEBATE, 8000 PROPOSED MODIFICATIONS WITH 2000 MODIFICATIONS ACCEPTED,
MANUEL VALLS DECIDED TO PASS THE MACRON LAW USING THE 49.3 CLAUSE, I.E. PASSING THE LAW
WITHOUT THE SUPPORT FROM THE PARLIAMENTS MAJORITY
CRITICS ARGUE THAT THE LAW, BEING TOO LIBERAL, IS INDIRECTLY IMPOSED BY REPRESENTATIVES IN
BRUSSELS AND BERLIN

REFORMS PUT IN PLACE STARTING THIS SUMMER:

Sunday openings in tourist areas
Regulation of compensations to employees enrolled in working related disputes in court

THE MACRON LAW WILL BE DEBATED A THIRD AND LAST TIME IN THE NATIONAL ASSEMBLY BEFORE BEING
COMPLETELY PASSED
The second usage of the 49.3 clause stresses the continuous struggle of the French Government to rally its own
partys members

SOURCES: 5 & 6
BUSINESS SWEDEN

6/18/15

SOURCES
1.

LES ECHOS 15/06/2015, FACE LA CRISE, LES FRANAIS ONT CHANG LEUR FAON DE DPENSER,
HTTP://
WWW.LESECHOS.FR/JOURNAL20150615/LEC1_FRANCE/021132695205-FACE-A-LA-CRISE-LES-FRANCAIS-ONT-CHANGE-LEUR-FACON-DEDEPENSER-1128254.PHP

2.

LES ECHOS 15/06/2015, LINVESTISSEMENT DES MNAGES RESTE LE TALON DACHILLE DE LA REPRISE,
HTTP://
PATRIMOINE.LESECHOS.FR/PATRIMOINE/IMMOBILIER/021133460944-LINVESTISSEMENT-DES-MENAGES-RESTE-LE-TALON-DACHILLE-DE-L
A-REPRISE-1128235.PHP

3.

LES ECHOS 16/06/2015, LELYSE LANCE UNE NOUVELLE OPRATION DE SDUCTION AUPRS DES FIRMES TRANGRES,
HTTP://
WWW.LESECHOS.FR/JOURNAL20150616/LEC1_FRANCE/021137678414-LELYSEE-LANCE-UNE-NOUVELLE-OPERATION-DE-SEDUCTION-AU
PRES-DES-FIRMES-ETRANGERES-1128675.PHP

4.

LES ECHOS 15/06/2015, GAZ : ENGIE CONFRONT UNE ROSION DE SES PARTS DE MARCH EN FRANCE,
HTTP://
WWW.LESECHOS.FR/INDUSTRIE-SERVICES/ENERGIE-ENVIRONNEMENT/021138681048-GAZ-ENGIE-CONFRONTE-A-UNE-EROSION-DE-SE
S-PARTS-DE-MARCHE-EN-FRANCE-1128499.PHP

5.

LES ECHOS 16/06/2015, EMMANUEL MACRON : NOUS DEVONS CONTINUER RFORMER EN PROFONDEUR LE MARCH DU TRAVAIL,
HTTP://
WWW.LESECHOS.FR/POLITIQUE-SOCIETE/POLITIQUE/021142099943-EMMANUEL-MACRON-NOUS-DEVONS-CONTINUER-A-REFORMER-LEMARCHE-DU-TRAVAIL-1128878.PHP

6.

FINANCIAL TIMES 16/06/2015, MANUEL VALLS OVERRIDES PARLIAMENT TO PUSH THROUGH PRO-BUSINESS BILL,
HTTP://NEXT.FT.COM/5829EE34-141F-11E5-ABDA-00144FEABDC0

BUSINESS SWEDEN

6/18/15