IDEAS home Printed from https://ideas.repec.org/a/ifs/fistud/v36y2015ip431-452.html
   My bibliography  Save this article

French Public Finances through the Financial Crisis: It's a Long Way to Recovery

Author

Listed:
  • Mathias André
  • Antoine Bozio
  • Malka Guillot
  • Louise Paul‐Delvaux

Abstract

France was modestly hit by the financial crisis compared with its neighbours but the recovery has been particularly slow. The shock to the public finances was nonetheless significant, and came on top of an already weak pre-crisis fiscal position. Part of this shock is expected to be permanent and the French government has so far mostly used increases in taxation to bring borrowing under control. However, in 2014, spending cuts took over as the main tool for balancing the public finances. Despite the significant fiscal adjustments that have been required, the crisis has not been used as an opportunity for reforms. Some reforms to labour and service markets have been carried out, but there have been no radical changes. While some tax changes, such as cuts to employer social security contributions and an increase in reduced rates of VAT, have improved the efficiency of the tax system, overall the tax and benefit system continues to be plagued by complexity and a sheer lack of transparency. As the remaining effort for balancing the public finances seems likely to rely on spending cuts, the overall efficiency of the policy response to the crisis will depend in large part on how these are done.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mathias André & Antoine Bozio & Malka Guillot & Louise Paul‐Delvaux, 2015. "French Public Finances through the Financial Crisis: It's a Long Way to Recovery," Fiscal Studies, Institute for Fiscal Studies, vol. 36, pages 431-452, December.
  • Handle: RePEc:ifs:fistud:v:36:y:2015:i::p:431-452
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santiago Lago-Peñas & Jorge Martinez-Vazquez & Agnese Sacchi, 2020. "Fiscal stability during the Great Recession: putting decentralization design to the test," Regional Studies, Taylor & Francis Journals, vol. 54(7), pages 919-930, July.
    2. Allain, Marie-Laure & Chambolle, Claire & Turolla, Stéphane, 2022. "The Effect of Input Price Discrimination on Retail Prices: Theory and Evidence from France," Working Papers 327329, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Breda, Thomas & Haywood, Luke & Wang, Haomin, 2022. "Equilibrium Effects of Payroll Tax Reductions and Optimal Policy Design," IZA Discussion Papers 15810, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ifs:fistud:v:36:y:2015:i::p:431-452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emma Hyman (email available below). General contact details of provider: https://edirc.repec.org/data/ifsssuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.