Economy

Benoît Hamon has joined the economy minister in a revolt against austerity measures, warning that they are sending France into recession.

Bank of France forecasts 0.2% economic growth in third quarter, while statistics agency INSEE forecast 0.7% expansion for whole of 2014.

French statistics office Insee said prices in January fell by 0.6% compared with previous month, prompting economists to warn of possible deflation.

The French national statistics institute reported the country's economy expanded by 0.3 per cent in the fourth quarter of 2013, more than expected.

Public embrace of 'supply-side socialism' is generating as much pressure on the French president as are revelations of his personal life.

UK premier's talk of countries with 'increasing unemployment, industrial stagnation and enterprise in free-fall' seen as attack on French policies.

France's reading in Markit's latest purchasing managers' index falls to a seven-month low, suggesting accelerating economic contraction.

France's economy shrank by 0.1% in the third quarter but ministers insist that the overall figures for 2013 will show growth.

Industrial output fell 1.4 percent in June from the previous month, contrasting with recent positive data, and underlining recovery is still fragile.

Unions and church leaders support ban on Sunday shopping, but business federations appear to be winning public support to overturn the rule.

France is in a second recession in four years after the economy shrank by 0.2% in the last quarter of 2012 and in the first quarter of 2013.

Funds are speculating that President Hollande's gamble on increasing public spending to boost economic growth will fail.

Earlier this week the French Senate held the first of two parliamentary consultative debates to explore how to make France a more attractive destination for skilled foreign professionals and students, an issue that has long been neglected and submerged under the anti-immigration policies and political rhetoric of the government’s predecessors. In a move to catch up with initiatives launched by other countries, the government plans to present a bill of law this summer to reform its immigration legislation to attempt to facilitate and encourage professional immigration. Carine Fouteau reports on how what was once a political taboo is now the subject of an open and aggressive competition for an ever-growing and increasingly-needed pool of talent worldwide.

French finance minister Pierre Moscovici revises downward a previous estimate of 0.8 percent growth in 2013 as economy struggles.

Hopes of economic recovery in eurozone thrown into doubt after figures confirm its two largest economies have performed worse than forecast.