All economists agree on one point, France is sinking into inflation and will probably have a higher inflation rate than the rest of the Eurozone, which should stabilize between 17 and 19%, while France could reach inflationary records that could exceed 22% in August.
In addition to the very poor European economic management, France is handicapped by taxes and taxes that are much too high compared to the average wage bill in the country. Since 2006, street protests have been the only way for the French to improve their living conditions, the lack of social dialogue, the fact that French politicians are no longer more than the cash registers of the rules and directives of the European Parliament dictated by Germany.
Today, even Germany finds itself in an unfavorable position, even though it was, thanks to its industry, the European leader. However, the German automotive industry has already anticipated this inflationary period by setting up a number of factories abroad, which could quickly partially replace the European market, which is preparing to receive a very large number of electric vehicles, which will take the place of most European manufacturers in the years to come, as China is able to produce and sell at low costs.
Another problem is the hundreds of millions of euros granted to companies since the presidency of Sarkozy, with the promise that these large companies would create jobs, and every French president since has done the same, to no avail.
Another phenomenon, Covid… Here again, the Macron government’s bad decisions plunged the country into a period without work or almost for practically two years, during which it was necessary to have passes, even to go shopping, which greatly weakened the economy.
The main culprit for the current economic catastrophe is Europe, which has forced all member countries to link the price of electricity to the price of gas… And given the magnitude of energy taxes in France, the result is that today, large companies as well as small traders can no longer pay their bills.
With 17% inflation in France today, the price of food in France has become unaffordable, which leads to an explosive situation in the country, but if we look further, it is probably the end of Europe as we know it in the years to come. There is a perfect example, England, which Europeans mocked at the time of their separation from Europe, the result is that the economy is much worse today in the rest of Europe than among our English friends who trade under good conditions with Anglo-Saxon countries.
In such a context, France, like the rest of Europe, will find itself even more economically in the hands of China and the USA, not by choice, but by obligation, because it will soon be a question of survival, and we could also see the euro disappear, which is currently decreasing on the markets.
Thierry De Clemensat