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In pursuit of an Alternative Path

The French economy is undeniably in a bad way. But trying to overcome its shortcomings with the kind of shock therapy inflicted on Southern Europe would be the most dangerous response, both for France and the entire euro area. An alternative approach is therefore required—one that will necessarily involve leveraging more effectively the factors that set the French economy apart. This, then, is the value of taking a closer look at France’s key strengths.

CONTENTS 

France is in a bad way, with a very real risk of lapsing into critical condition 

• You can’t cure debt with austerity
• Competitive deflation—a non-option
• France, Germany: two economies, two models

In pursuit of an alternative path

• Just what are France’s key strengths?
• The benefits of favorable demographics for demand, investment, available capital and personal wealth
• France’s underrated productivity
• French companies’ international footprint and standing
• R&D
• Geographic location, tourism, and agriculture
• Leveraging the French economy’s strengths more effectively to tackle the crisis