How Emmanuel Macron’s Presidency May Impact the Business Decisions
Speaking about the popularity of a new French president we must acknowledge that only a fifth of the electorate supports his vision on a new politics. The number of abstentions, blank ballots and votes cast chiefly to keep Le
Pen out make it clear. Therefore, in his decisions about reforms Macron should always bear in mind two major problems of the French society which are to be solved as soon as possible: slow economic growth and high
unemployment. These two points may impact also all the business decisions taken either by the local companies or transnational enterprises located on the territory of the French Republic.
The task is rather challenging as the unemployment rate in France is currently close to 10%. And for young people under 25 it has been above 20% since 2009. Enterprises in France are rather reluctant to hire new
employees because firing them is time-consuming and expensive. Moreover, a 35-hour working week, a bunch of taxes on employment and union-dominated sectoral bargaining do not encourage them to create new jobs and influence the business decisions taken by enterprises. Besides, the new French president also should not forget about the most potent source of resistance in the country — street protests and strikes. Those already forced another head of the state to abandon the reform of economy in 1995. Another barrier could be caused by the new government. Most probably Macron will preside over a minority government or form a coalition as to secure a legitimate reform he needs the backing of the legislature.
Summing up, the new French president intending to focus on the joblessness problem solution may impact fundamentally the business decisions taken in the country through development of new rules and conditions for creation new job places.
“France’s new president promises openness and reform from the centre”, The Economist, 13 May 2017, Download Full Essay Show full preview