The economy in France is currently struggling with major difficulties. The culprits are rising unemployment figures and companies that are gradually having to file for bankruptcy.
France is the second-largest economy in the EU and therefore plays a crucial role in a stable euro. If the situation in the country continues to worsen could also have an impact on neighboring countries. President François Hollande has hardly achieved anything worth mentioning in his term in office so far and is being criticized by the media, in part rightly so.
The situation is exacerbated at the moment by the fact that customers with purchasing power are staying away during the summer vacations in France. These are now slowly coming to an end and the stores are filling up again.
After his resignation on Monday, François Rebsamen predicted that the unemployment figures will probably fall even further. In June, the number of unemployed was over 3 million. That corresponds to 10.1%, according to the statistics office Insee. What’s missing are foreign investors, among others, who are staying away not least because of the increased labor costs in France.
Whether a new government can turn the tide remains to be seen; without a concrete plan of action, France will have a hard time holding its own in the European market in the future.