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 precrisis 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

18 JUNE, 2015

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

2010

2011

2012

2013

2014

SOURCE: 3
BUSINESS SWEDEN

18 JUNE, 2015

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

18 JUNE, 2015

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

18 JUNE, 2015

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-de-depenser-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-la-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-aupres-des-firmesetrangeres-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-ses-parts-de-marche-enfrance-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-le-marche-du-travail1128878.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

18 JUNE, 2015