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The launch of the euro brought about an impressive decrease of manufacturing production in France and huge losses of market shares

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  • Eric Dor

    (IESEG School of Management (LEM-CNRS))

Abstract

Since the launch of the euro, French and German industrial productions have extremely diverged. French manufacturing production decreased while German manufacturing industry very strongly increased. The decrease or stagnation of exports of French products contrasts with the strong increase of German exports. France lost market shares on the foreign markets. This evolution is a direct consequence of the flaws of the monetary union as it has been organized. Also, due to sharp differences in the average degree of sophistication of French products, sharing a common currency with Germany inevitably had to lead to a loss of competitiveness of France on foreign markets.

Suggested Citation

  • Eric Dor, 2013. "The launch of the euro brought about an impressive decrease of manufacturing production in France and huge losses of market shares," Working Papers 2013-ECO-07, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e201307
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