A leading French businessman is claiming that his country could face a long period of economic stagnation similar to that which Britain experienced during the 1970s. Henri de Castries, the chairman and chief executive of insurance giant Axa, claimed that the government of Francois Hollande must act quickly to save France’s future.
Axa is the world’s largest insurance company by total premium income, making it a major contributor to France’s tax income. The company has over 100,000 full time employees and earns over £70 billion in revenue during the last financial year – an impressive sum that gives it considerable sway in France’s political environment.
France has faced growing unemployment issues over the past decade – issues that have worsened considerably in the last three years. Henri de Castries claims that a major recession with lasting employment consequences could occur if the country’s leadership doesn’t learn from 1970s Britain and cut its overall spending.
With one of Britain’s most indebted economies, France continues to face economic issues that could have major long-term consequences. The country has faced large amounts of pressure from the European Commission, which has specifically asked France to reduce its government spending in order to reduce overall debt.
Henri de Castries is one of several French business leaders concerned about long-term economic consequences. Specific areas of concern include the French labour code, which clocks in at over 3,650 pages. The Swiss labour code, in comparison, is just 70 pages long and has not been significantly amended for several years.
The biggest problems facing France’s long-term economic outlook, according to Mr. de Castries, are a lack of opportunities for French youth, a ‘mass exodus’ of skilled, ambitious young people, and a government that’s unfriendly to businesses. To get back on track, the business leaders encourages ‘serious structural reforms.’
