NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

February 13th, 2015
Business Sweden in Paris

FRANCE: INCREASE OF 0,1 % IN MANUFACTURING IN

2014
Optimists argue that the French deindustrialization has
come to a halt
French manufacturing has fallen by 16,5 % since the
financial crisis in 2009 (see chart)
The transport sector mainly contributed to an overall
stabilization, with and increase of production of 1,5 % in
2014

Economists forecast a production increase of 1% in

2015, largely due to the depreciation of the euro and
falling oil prices
The European retail sales index increased by 2,8 % in
December 2014, the most significant increase since
2006
Consumer confidence is therefore said to boost
manufacturing in 2015

SOURCES: 1 & 2
BUSINESS SWEDEN

16 FEBRUARY, 2015

FRANCE: THE INCREASE IN COST OF LABOUR HAS

DRASTICALLY FALLEN SINCE 2012
The French cost of labour increased by 1,6 % from 2012 to the third quarter of 2014, compared to an increase of 9,4 %
between 2008 and 2012
The fall in labour cost can be explained by the introduction of Crdit dimpt pour la comptitivit de lemploi
Without this tax reducing tool, the French labour cost increase would have risen by approximately 4,4 % since
2012

The European commission predicts the French cost of labour increase to further decelerate vis--vis the increase in
German labours costs
Potential benfefical effects are projected into 2015, with marginal effects
on the French economy in 2014
France recorded trade deficit of 53,4 Bn in 2014, compared to a record
high trade surplus of 217 Bn recorded by the German economy

SOURCE: 3
BUSINESS SWEDEN

16 FEBRUARY, 2015

FRANCE: THE 1000 MAJOR EXPORTING COMPANIES

ANSWER FOR 70 % OF TOTAL EXPORTS
According to Matthias Fekl, the Secretary of State of Foreign Trade, French mid sized SMEs are particularly struggling
with their internationalization
The number of exporting intermediary sized companies increased by only 0,6 % in 2014
Export drop-outs:
Seven out of ten companies exporting for the first time abandon their foreign markets after one year of activity
After three years, merely one out of ten companies is still present on a foreign market
A comparison with the German neighbour: while Frances exporting companies amount to 121 000, the German
economy generates three times more exporting companies

The governmental agency Business France has been launched since the 1st of January 2015, with the aim of boosting
French exports
Project plan consisting in assisting 1000 SME by the end of 2015, compared to 712 assisted SMEs in December
2014
Promotion of SMEs as contractors to French groups on foreign markets
The hunt in packs strategy is seen as a first step to foreign trade, which in a later stage would allow SMEs to come
in contact with new international customers

SOURCE: 4
BUSINESS SWEDEN

16 FEBRUARY, 2015

FRANCE: SNCF INVESTS 450 M DURING THREE YEARS,

DIGITIZING THE TRAIN INDUSTRY
SNCF trains will be equipped with 4G internet access by the end of 2016
Focus on principal train connections to French major cities
Specific technology is needed in order to guarantee stable internet access at speeds around 300 km/h
Question whether the French 4G network is capable of fully meeting SNCFs demand
Offers are being submitted, an investment decision will be taken in June 2015

Five other investments to be made the coming three years

1.

Reduction of paperwork by equipping 50 000 additional maintenance agents with tablets, from todays level of
30 000

2.

Launching of a big data-databse available for comapnies to purchase, containing extensive information about train
departures

3.

Internet application store, suited for the companys clients and co-workers

4.

Start-up investment fund with an initial budget of 30 M

5.

New automized solutions mapping the flux of SNCFs passengers

SOURCES: 5 & 6
BUSINESS SWEDEN

16 FEBRUARY, 2015

SOURCES
1.

Les Echos 11/02/2015, Lindustrie stoppe enfin lhmoragie,

http://www.lesechos.fr/journal20150211/lec1_france/0204148672399-lindustrie-stoppe-enfin-lhemorragie-1092030.php

2.

Les Echos 11/02/2015, La France, lve moyen de la zone euro,

http://www.lesechos.fr/journal20150211/lec1_france/0204148890914-la-france-eleve-moyen-de-la-zone-euro-1092167.php

3.

Les Echos 12/02/2015, Le cot du travail grimpe moins vite de ce ct du Rhin,

http://www.lesechos.fr/journal20150212/lec1_france/0204152069132-le-cout-du-travail-grimpe-moins-vite-de-ce-cote-du-rhin-1092549.php

4.

Les Echos 09/02/2015, Les entreprises exportatrices demeurent trop peu nombreuses,
http://www.lesechos.fr/journal20150209/lec1_france/0204140054804-les-entreprises-exportatrices-demeurent-trop-peu-nombreuses-1091357.php

5.

Les Echos 11/02/2015, La SNCF promet linternet borde de tous ses trains,
http://www.lesechos.fr/journal20150211/lec2_industrie_et_services/0204148438063-la-sncf-promet-linternet-a-bord-de-tous-ses-trains-1092025.php

6.

Les Echos 11/02/2015, La rvolution numrique destinations des cleints comme des salaris,
http://www.lesechos.fr/industrie-services/tourisme-transport/0204148989427-la-revolution-numerique-a-destination-des-clients-comme-des-salaries1092138.php

BUSINESS SWEDEN

16 FEBRUARY, 2015