NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

February 20th, 2015
Business Sweden in Paris

FRANCE: GDP MODESTLY INCREASED BY 0,4 % IN 2014

An increase in purchasing power of 1,2 % didnt have an
important impact on the economy, since French
households tended to save rather than to consume in
2014
Households put aside on average 15,8 % of their
disposable income during the 4th quarter of 2014,
an increase of 0,8 % compared to 2013
The domestic demand increased by 0,6 %, offsetting a
negative trade balance, mainly contributing to the GDP
growth

Components affecting GDP growth

Change in 2014

Household investment

- 5,8 %

Corporate investment

+ 0,3 %

Public investment

- 2,1 %

Public spending

+ 1,9 %

Household consumption

+ 0,6 %

The positive effects of a weak euro and low energy

prices have not yet translated into a surge in
consumption and investment
The threshold of 1 % in GDP growth could be reached in
2015, enabling the French economy to start generating
job opportunities, according to Benot Heitz, economist
at Socit Gnrale

Annual variation of GDP, in %

1,6

2,4

2,4

2,0

2,1

0,2

'05

'06

'07

'08

-2,9
'09

'10

'11

0,4

0,4

0,4

'12

'13

'14

1,0

'15E

SOURCE: 1 & 2
BUSINESS SWEDEN

24 FEBRUARY, 2015

FRANCE: THE MACRON LAW PASSED WITH THE HELP OF

THE 49.3 CLAUSE
Despite an overall reluctance among political parties, towards the Economy Ministers Emmanuel Macron law package,
Franois Hollandes Government managed to pass the law without a voting in the National Assembly by using the 49.3
clause
The objective of la loi Macron has been to pass structural reforms, with the aim of injecting growth in the stagnating
French economy:
Improving the bases of competition among todays regulated professions, such as law clerks
Improving the efficiency of labour courts regarding procedures and lead times
Deregulation of long distance buss lines, further connecting cities, thus increasing competition and decreasing costs
for customers
Facilitating the obtaining of a drivers license through increased efficiency measures
Enabling businesses to be open twelve Sundays per year, from todays level of five days per year

Critics argue that there will be modest positive effects on the economy, since only 10 % of the workforce is influenced
by the reforms
By passing this controversial structural reform package, Franois Hollande sends a clear message to other members of
the European Union showing Frances determination in reducing its public deficit

SOURCE: 3, 4, 5, 6 & 7
BUSINESS SWEDEN

24 FEBRUARY, 2015

FRANCE: THE ORGANIC FOOD INDUSTRY TURNOVER

INCREASED BY 10 % IN 2014, AMOUNTING TO 5 BN
The organic food represents 2,6 % of the French food industry
Milk and eggs are the most commonly consumed goods, with a market share of 10 % and 20 % respectively
French organic food production counts for approximately 75 % of domestic organic food consumption
Six out of ten consumers consume organic groceries on a monthly basis

Representing 10 % of European organic plantations, France comes third after Italy (1,3 million hectares) and Spain (1,6
million hectares)
Farmers are investing in organic plantations at a growth rate of 4 %, to surpass Italy in three to four years time,
according to trade association officials
An additional of 100 000 hectares are currently being converted into organic plantations, with a conversion time of
two to three years

SOURCE: 8 & 9
BUSINESS SWEDEN

24 FEBRUARY, 2015

SOURCES
1. Les Echos 16/02/2015, Le retour de la croissance est enfin espr aprs une fin danne 2014 sans entrain,
http://www.lesechos.fr/journal20150216/lec1_france/0204158023697-le-retour-de-la-croissance-est-enfin-espere-apres-une-fin-dannee-2014-sansentrain-1093564.php
2. Les Echos 16/02/2015, Une pargne de prcaution toujours plus forte,
http://www.lesechos.fr/journal20150216/lec1_france/0204158683131-une-epargne-de-precaution-toujours-plus-forte-1093517.php
3. Les Echos 17/02/2015, Loi Macron: face la fronde, Valls contraint au 49-3,
http://www.lesechos.fr/politique-societe/politique/0204166699840-loi-macron-face-a-la-fronde-valls-contraint-au-49-3-1094214.php
4. Les Echos 15/02/2015, Loi Macro : les principales volutions du texte,
http://www.lesechos.fr/economie-france/budget-fiscalite/0204161076572-loi-macron-les-principales-evolutions-du-texte-1093407.php
5. Les Echos 16/02/2015, Nouvelles rgles de jeu pour les prudhommes,
http://www.lesechos.fr/journal20150216/lec1_france/0204158616615-nouvelles-regles-du-jeu-pour-les-prudhommes-1093591.php
6. Le Monde 08/12/2014 , Travail du dimanche, pouvoir d'achat... ce que prvoit (ou pas) la future loi Macron,
http://www.lemonde.fr/les-decodeurs/article/2014/12/08/travail-du-dimanche-autocars-professions-reglementees-qu-y-a-t-il-dans-la-loimacron_4536498_4355770.html
7. Financial Times 17/02/2015, French government overrides parliament to ram though reforms,
http://www.ft.com/intl/cms/s/0/3e2f4314-b67b-11e4-a5f2-00144feab7de.html#axzz3SZOzcL1v
8. Les Echos 19/02/2015, Cultures bio: la France double lAllemagne,
http://www.lesechos.fr/journal20150219/lec2_industrie_et_services/0204168667576-cultures-bio-la-france-double-lallemagne-1094767.php
9. Usine Nouvelle 23/02/2015, La France dpasse lAllemagne dans lagriculture bio,
http://www.usinenouvelle.com/editorial/la-france-depasse-l-allemagne-dans-l-agriculture-bio.N315239

BUSINESS SWEDEN

24 FEBRUARY, 2015