2023-05-11 11:15:07
Emmanuel Macron likes “great national causes “, a legitimate formula in the case of the reindustrialization of France, one of the priorities of the program of the hundred days of its Prime Minister, Elisabeth Borne. The ministers, local elected officials and business leaders present around the President of the Republic, on May 12, in Dunkirk (North), will certainly have it in mind, whether it is pronounced or not. Mr. Macron must indeed announce the establishment of the Taiwanese ProLogium Technology battery factory for electric cars, an investment of 5 billion euros for the fourth gigafactory created in Hauts-de-France.
It is easier in France to speak of “deindustrialization” than of “reindustrialization” as the figures are so eloquent. “It started in the 1970s, but suddenly accelerated at the dawn of the year 2000”cruelly summarizes the boss of Bpifrance, Nicolas Dufourq, in the book The Deindustrialization of France. 1995-2015 (Odile Jacob, 2022). In twenty years, the country has lost almost half of its factories and a third of its industrial jobs. In general indifference, areas of activity have been wiped off the map, know-how lost forever, families destroyed. Industry now weighs only 12% of GDP, ten points less than in Germany.
The burst did not occur until 2016, and the first merit must be attributed to François Hollande. In recent years, there have been more factory openings than closings and the balance of jobs amounts to a few tens of thousands, out of 21 million private sector employees. Not yet something to cheer about, therefore.
Reindustrialization remains fragile, but politicians, bosses and trade unionists agree on one point: the productive stake is major. The sector offers better wages, contributes to territorial cohesion and generates many associated services; it shows productivity gains, provides the largest share of private research and development and strengthens national sovereignty.
Competitiveness lag
At the next Choose France summit, on May 15 at the Palace of Versailles, Mr. Macron is expected to announce some 10 billion euros in foreign investment in France. It will be easy for him to point out, with the annual barometer of the EY firm in support, that the attractiveness of the country has held up well in 2022. France has even retained the first place on the European podium with 1,259 projects for establishments or extensions of sites, an assessment that was unthinkable ten years ago. Since 2017, the State has provided the means. It provides for 54 billion euros of investment over 2022-2027 in favor of industry, innovative technologies and ecological transition.
However, it should be remembered that foreign capital creates almost twice as many jobs in Germany and the United Kingdom, countries where there are more factory creations than factory extensions. France is lagging behind in terms of competitiveness compared to its major competitors. It has never experienced such an abysmal trade deficit (164 billion euros in 2022) or borne such a debt.
And the EY firm warns that “recent political and social tensions may have led investors to question the government’s ability to pursue reforms”. Their three-year plans are in decline. Convincing that France is back on track, now in line with the essential consideration of the current climate crisis, will still require effort.
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