Sunday, July 8, 2012

Parisot Foresees Wave of Bankruptcies

The head of the MEDEF (who has survived in her position for quite a long time) is painting a bleak picture of the state of French industry. There will be a wave of bankruptcies over the summer, particularly among small to medium firms servicing the auto industry, which has been in decline in France. Her proposal: competitiveness should be at the center of consultations among the social partners, and the burden of financing social protection schemes should be shifted from firms to the public via a "social VAT," a proposal already mooted under Sarkozy. It's very unlikely that Hollande will go for this.


Rosa Elle said...

Hello, I think that Parisot is not the best consulter about economicals.
She has a limited impact in terms of business action.
The MEDEF is an inapropriated structure,coming from the past, some of business syndicated or lobbies are not represented.
This is a lost and waste of time really to analyse what Parisot think of and about economical situation.
That's my opinion.

Thank you for your very interesting blog

James C. Brown said...

I feel torn on these issues. On an ideal plan, in theory, Parisot & Gallois are right: its important to lower "charges sociales", etc. On the other hand - ie, in reality - nothing guarantees that this will translate into jobs or have positive knock-on effects for a wider group of stakeholders.

Indeed, I'm inclined to think that c-suite types like Gallois are very long-term, almost Braudelian: there'll be jobs for the French, alright like in maybe 10 or 20 years or so.