NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

June 29th, 2015
Business Sweden in Paris

FRENCH PUBLIC SPENDING COULD DECREASE THE

PROBABILITY OF REACHING PUBLIC DEFICIT GOALS
The French General Accounting Office (GAO) published
a report on Wednesday 24/06, where it criticizes the
increase of public spending:
GAO states that there is a possible increase in public
spending between 1.8 and 4.3 bn in 2015, which will
make it more difficult to bring back the public deficit to
3.8 % of GDP in 2015
Bercy has countered critics by asserting that a reserve
of 8 bn has been built up for unexpected expenses

French public investments are among the highest in

Europe:

Amounting to 96 bn, representing 3.8 % of GDP

The average European public investment rate
amounts to 3.3 %
Critics coming from the GAO stating that investments
from local authorities need to me more rational

SOURCE: 1
BUSINESS SWEDEN

29 JUNE, 2015

BOUYGUES TELECOM REFUSES SFR-NUMERICABLE

OFFER
On 26/06, Bouygues Telecoms board of directors agreed on not accepting SFR-Numricables acquisition offer
SFR-Numricable was ready to offer 10 bn to acquire Bouygues Telecom, compared to Oranges and Illiads offer
amounting to 7 bn dating back to 2014

The refusal was based on three factors:

1.

The financing of the acquisition was to be based entirely on debt capital, which wouldnt guarantee the deal

2.

A merger would have inhibited competition on the French telecom market, which could have go against current
market competition legislation

3.

Bouygues Telecom has developed competitiveness in the 4G field, currently able to cover 70 % of the French
population, on which the operator will continue to build its business

SOURCES:2, 3 & 4
BUSINESS SWEDEN

29 JUNE, 2015

MIXED SIGNALS ABOUT THE FRENCH BUSINESS

CLIMATE
New numbers published on 23/06 sent mixed signals
about the French business climate:
The Markit index, measuring French business
managers morale, reached 53.4 points in June 2015,
which is its highest value since August 2011
Insees latest report concluded that the French
Business climate decreased by one point, reaching 97
points, which is under its long-term average

Foreign trade didnt evolve during the first quarter of

2015, despite a depreciation of the Euro
The positive effects of a weak Euro, are to bee seen
during the second quarter of 2015, according to Franois
Bau, economist at Barclays

SOURCE: 5
BUSINESS SWEDEN

29 JUNE, 2015

ECO-EMBALLAGE DEMANDS IMPROVED RECYCLING

METHODS OF PLASTICS
Eco-Emballage, an organization responsible for the
French economys recycling procedures, discussed the
challenges of French recycling during their general
assembly on the 22/06

Different types packaging in France in 2013

1,4%
6,4%

Key points discussed:

1,9%

9,4%

48,1%

There is a specific need of improving the recycling

methods of certain local communities, which
recycling rate of packages only amount to 30 %,
compared to an average recycling rate of 67 %

Glass
Paper or cardboard
Plastic
Plastic bottles
Steel

Discussions with the French Government on how to

facilitate recycling for corporations and individuals

Investment plan of 45 M to enhance the recycling of

plastic to meet European standards

0,5%

Brik
Aluminium

13,0%

Other

19,3%

SOURCE: 6
BUSINESS SWEDEN

29 JUNE, 2015

SOURCES
1.

Les Echos 25/06/2015, Dpenses de l'Etat : risque de drapage de 2 4 milliards selon la Cour des comptes,
http://www.lesechos.fr/journal20150625/lec1_france/021160699603-depenses-de-letat-risque-de-derapage-de-2-a-4-milliards-selon-la-cour-des-comptes1131542.php

2.

Les Echos 22/06/2015, Le mariage de Bouygues Telecom et SFR pourrait tre conclu mardi,
http://www.lesechos.fr/tech-medias/hightech/021155742724-le-mariage-de-bouygues-telecom-et-sfr-pourrait-etre-conclu-mardi-1130636.php

3.

Les Echos 23/06/2015, Bouygues refuse de vendre sa filiale tlcoms Patrick Drahi,
http://www.lesechos.fr/tech-medias/hightech/021158869686-bouygues-telecom-dit-non-a-sfr-1130988.php

4.

Bouygues 23/06/2015, Communiqu de presse Bouygues,

https://www.bouygues.com/wp-content/uploads/2015/06/CP_Bouygues_23062015_VF.pdf

5.

Les Echos 24/06/2015, L'activit montre de nouveaux signes d'amlioration,

http://www.lesechos.fr/journal20150624/lec1_france/021157601586-lactivite-montre-de-nouveaux-signes-damelioration-1131014.php

6.

LSA 22/06/2015, Eco-emballages : les centres de tri doivent se moderniser,

http://www.lsa-conso.fr/eco-emballages-les-centres-de-tri-doivent-se-moderniser,213516

BUSINESS SWEDEN

29 JUNE, 2015