Latest news with #AméliedeMontchalin
LeMonde
2 days ago
- Business
- LeMonde
Why the French economy is stuck in stagnation
With consumer spending failing to rebound, savings rates remaining at record highs, investments struggling to recover and foreign trade slipping back into deficit, all the engines of the French economy have come to a halt. According to the new outlook from INSEE, France's national statistics agency, published on Wednesday, June 18, GDP growth in 2025 is not expected to exceed 0.6%. This is likely a disappointment for the government, which had revised its growth forecast down to 0.7% in April, a 0.2-point drop from the 0.9% it still hoped for in January. Despite fresh uncertainty triggered by the war between Israel and Iran, Amélie de Montchalin, the minister for public accounts, said on Tuesday: "Our growth forecast remains achievable." INSEE's outlook is more pessimistic than the government's. Growth was barely positive in the first quarter (0.1%) and was only expected to reach 0.2% in each of the next three quarters. The French economy has not benefited from the slight improvement in the eurozone business climate, partly linked to lower interest rates. "Fiscal consolidation is weighing on activity," stressed Dorian Roucher, head of the economic outlook department at INSEE. Government consumption, for instance, fell in the first quarter of 2025 compared to 2024 (0.2% instead of 0.4%). The government, which must bring the public deficit down to 5.4% of gross domestic product in 2025 after 5.8% in 2024, is seeking to cut public spending by €40 billion. 'Excess savings' phenomenon Another handicap: Unlike the United Kingdom, Germany or Italy, France has not benefited from the "commercial rush" – that is, companies' rush to build up inventories ahead of the tariffs announced by US President Donald Trump in early April. This phenomenon led to a 1.7% jump in global trade in the first quarter. French foreign trade, after two strong years, slipped back into deficit. Despite the high-profile delivery of the cruise ship World-America by Chantiers de l'Atlantique to Swiss company MSC in March, exports fell by 1.8% in the first three months of the year. For 2025 as a whole, foreign trade is expected to reduce French GDP growth by 0.7 percentage points.
Local France
29-04-2025
- Business
- Local France
France proposes extra fees on small parcels from outside EU
French ministers have proposed strengthening border checks and adding a small 'handling fee' to goods purchased online from outside of the EU. The proposal is intended to target goods coming from China - as Europe prepares for the country to increase the number of goods sold in Europe following US tariffs - but would apply to purchases made in any non-EU country. For example, if you were to purchase makeup from a British brand only located in the UK, then it could be subject to additional scrutiny and thus a small handling fee would be added onto the final cost of the product. Advertisement As things stand, 'small parcels' (worth less than €150) that are purchased online and sent by mail to consumers in the EU are below the threshold for customs duties, though you do have to pay value-added tax (VAT). France cannot change the EU customs rules unilaterally, but in 2028, the EU will be able to vote on whether or not to scrap the exemption for customs duties on low-value packages. Until then, the idea, from the finance minister, Éric Lombard, and public accounts minister, Amélie de Montchalin, as discussed during a visit to Roissy-Charles de Gaulle airport on Tuesday, is to add on special handling fees. In 2024, 4.6 billion packages each worth under €150 entered the EU -- more than 145 per second -- with 91 percent originating in China. Some 800 million such packages were shipped to France alone last year, and in addition to making it harder for French retailers to compete, they also drive pollution, Le Parisien reported. How much would the fees be and what do they cover? According to reporting by AFP, the fee would be 'a few euros or a few cents' per item purchased, and it would help cover the cost of checking the incoming billions of small packages each year ordered by EU consumers via platforms such as Chinese-founded firms Temu and Shein. In 2023, BFMTV reported that over 225,000 imported toys were destroyed because they did not meet European safety standards. The French ministers explained that the goal will be for France's consumer affairs body (the DGCCRF) would conduct "360 degree" checks to better verify safety standards and environmental labelling and claims too. The French government also wants to better combat VAT fraud by de-registering imports which fail to submit requested documents. According to Le Parisien, the results of these more in-depth inspections will be available to consumers via the DGCCRF website , as well as on the consumer watchdog site ( Rappel Conso ). Advertisement Who would have to pay the fee? The minister for public accounts said that the handling fee should be paid "by the importers, the platforms, and not consumers". That said, platforms often pass on extra costs to customers, so it is possible consumers would see increased prices when buying small items from the US or UK. When would the change take effect? France hopes such a move could come into force in 2026. The country is also hoping to attract other EU members to the idea to make it harder for platforms to circumvent such a fee. "We can't do this alone, because if we do this alone the flows will go to another country," Finance Minister Eric Lombard said during the same visit to CDG airport. "We're hoping to quickly unite a group of countries that could implement such a measure," added de Montchalin. Foreigners living in France already face extra charges on parcels if the VAT and customs paperwork is not completed correctly. Explained: How to deal with fees for international parcels
See - Sada Elbalad
27-04-2025
- Business
- See - Sada Elbalad
France to Cut One-Third of Government Agencies to Save Funds
Israa Farhan France's Minister of Public Accounts, Amélie de Montchalin, announced on Sunday that the French government plans to propose merging or eliminating one-third of government agencies by the end of the year to reduce public spending. This measure is expected to help save between two billion and three billion euros. In an interview with French news outlets CNews and Europe 1, Minister de Montchalin stated that the proposed changes would be included in the budget by year-end. She emphasized that this restructuring is part of the government's broader strategy to reduce public sector costs. This decision comes as part of the French government's effort to meet the European Union's fiscal target. Prime Minister François Bayrou's government aims to lower the country's budget deficit from the current 5.4% of GDP to 3% by 2029, in accordance with EU requirements. Additionally, French Finance Minister Eric Lombard revealed that the government plans to reduce overall spending by 40 billion euros in the upcoming fiscal year as part of its budgetary reforms. This initiative is expected to streamline government operations while contributing to the country's long-term fiscal health. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
