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.

2 comments:

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.
Sincerely,
Rosa

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.