Official: why President Hollande's economic policies are doomed to fail


The influential Observatoire Français des Conjonctures Économiques (OFCE), known as the French Economic Observatory in English, has just published a powerful critique of French government economic policy. In cautious but bleak language it charts how austerity is sapping France's economy while pointing out that the government's massive hand-outs to companies will contribute only a meagre stimulus to growth. Its grim conclusions match those of other economists, but this study differs by also showing how austerity choked off a recovery back in 2010 that could have delivered nearly 2.4% growth instead of the anaemic, near-zero growth since. It is, argues Mediapart's Laurent Mauduit, a damning indictment of President François Hollande's economic strategy.

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A recently-published study from the influential independent research centre the Observatoire Français des Conjonctures Économiques (OFCE) on France's economic outlook for 2014-2015 makes miserable reading. The study, entitled 'France: Croissance hors taxes' ('France: Growth before Tax') (see below) is written by four economists, Éric Heyer, Bruno Ducoudré, Hervé Péléraux and Mathieu Plane, and analyses various aspects of French economic policy. Despite its neutral tone it reads like an indictment, and its findings are damning. It concludes that President François Hollande's economic strategy of austerity for most people on the one hand and exorbitant payouts for companies on the other has slowed rather than boosted the economy.