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NEWS COVERAGE - FRANCE

ECONOMY & BUSINESS NEWS FROM THE PAST WEEK
2nd October
Business Sweden in Paris

FNAC WISHES TO ACQUIRE DARTY

30/09/2015
The CEO of Fnac, Alex Bompard, announced on Wednesday 30th of October that proposed an offer to acquire Darty
The offer implied 720 million euros for 100% of Dartys stakes
Darty, the multi-channel electrical retailer specializes in white goods, telecommunications and information
technology.
The motive behind the potential acquisition:
To become the leading distributor of technical products, cultural products and appliances in France
Extended product line
Increased international exposure
Strengthening of the multichannel potential through complementary websites
Key figures of the two groups
Fnac
114 stores in France
3,9 billion euros in turnover
41 millions net income

Darty
289 stores
3,5 billion euros in turnover
14 millions net income

SOURCES: 1,2,3
BUSINESS SWEDEN

2 OCTOBER 2015

FRENCH GOVERNMENTS BUDGET 2016

30/09/2015
The French government presented on Wednesday the budget for 2016
Budget 2016: Restrained public spending and tax cuts of 11 billion euros
9 billion euros in corporate tax cuts to boost hiring and investment
2 billion euros cut on income taxes
The budget is based on expected economic growth of 1.5 percent next year

First budget under Francois Hollande to meet the government's deficit targets

Main characteristics of the budget:

Priorities in security, justice, education and university, and culture
Tax cuts, as regards companies, 9 billion, as in the case of households, 2 billion
Reduce the deficit, according to the commitments taken with European partners
Restrained public spending and particularly a very strong control of government expenditure

Aims to solve high unemployment and weak growth

SOURCES: 4,5
BUSINESS SWEDEN

2 OCTOBER, 2015

AIR FRANCES ACTIONS TO MEET PROFITABILITY GOALS

01/09/2015
The direction of Air France announced this Thursday their new actions needed to meet their profitability goals
Failed agreements with pilots (freeze pay and increased productivity) are the reasons behind the downsizing
The reductions concerns:
5 long flight routes should be phased out by summer 2016
1000 employees affected

If new profitability goals are not met, more aggressive cuts affecting nearly 5000 employees could be realized
The future of the company is of great importance to French economy as it employs 64.000 persons

SOURCES: 6,7
BUSINESS SWEDEN

2 OCTOBER, 2015

FRENCH CROWDFUNDING DOUBLED IN ONE YEAR

28/09/2015
The French crowdfunding platforms collections:
66 million euros first half of 2014
133 million euros first half of 2015
1 750 000 French people had by mid 2015 engaged in a crowdfunding activity, which is 750 000 more since last year
Next to the UK, France now has the largest crowdfunding sector in Europe

Large French platforms: Ulele, Kisskissbankbank, Babeldoor

Positive impacts on the French economy:

Accelerate growth of early-stage companies
Increased visibility
Creates opportunities for jobs

SOURCES: 8,9
BUSINESS SWEDEN

2 OCTOBER, 2015

SOURCES
1.

http://www.lsa-conso.fr/ce-qu-il-faut-savoir-sur-le-digital-chez-darty-et-fnac,220989

2.

http://www.lemonde.fr/entreprises/article/2015/09/30/la-fnac-fait-une-offre-de-rachat-a-darty_4777791_1656994.html

3.

http://www.lesechos.fr/industrie-services/conso-distribution/021366220363-darty-pourrait-tomber-dans-lescarcelle-dela-fnac-1160754.php

4.

http://www.lemonde.fr/politique/article/2015/09/30/michel-sapin-assure-pour-2016-une-maitrise-tres-forte-desdepenses-de-l-etat_4777844_823448.html

5.

http://www.businessinsider.com/ap-france-to-cut-corporate-income-taxes-in-2016-budget-2015-9?IR=T

6.

http://www.bloomberg.com/news/articles/2015-10-01/air-france-to-shrink-airline-after-pilots-resist-cost-savings

7.

http://www.lesechos.fr/industrie-services/tourisme-transport/021370829977-feu-vert-du-conseil-dadministration-dairfrance-klm-au-plan-de-reduction-du-reseau-et-des-effectifs-1161340.php

8.

http://www.lesechos.fr/finance-marches/banque-assurances/021334607319-crowdfunding-les-fonds-collectes-enfrance-ont-double-en-un-an-1156605.php

9.

http://www.dynamique-mag.com/article/sites-web-crowdfunding-france.5237

BUSINESS SWEDEN

2 OCTOBER, 2015