In the early days of 2026, many experts joined in condemning the French (and European) economies for falling behind their American and Chinese competitors, if not indeed for a general decline. “France is falling off the pace,” these experts essentially argued: productive capacities have weakened; offshoring and the lack of investment in research and development have reduced the country’s ability to control and secure its supply chains; the erosion of domestic production is reflected in the fact that it produces only 36% of the manufactured goods consumed in France (while between 20% and 25% of French food is also imported). Meanwhile, the share of public debt held by non‑residents is increasing. “The country is adrift,” wrote the economist Christian Saint-Étienne, “France is threatened with a general downgrading.” Given this assessment, what is to be done?
Louis Gallois tells us that “growth is the absolutely necessary—though not sufficient—solution to the problems the country is facing”. But “growth cannot be achieved by decree”. It requires an increase in the volume and quality of work (a higher employment rate among youth and older people, together with controlled immigration) and improved skill levels (education and training). Moreover, “production processes have to be enhanced by technical progress” (particularly, advances in digital technology) and the commitment to research and innovation, which is currently insufficient, must be boosted. There needs to be a new public stimulus to innovation, with an ecosystem of skills and a means of raising the funds essential for developing innovative enterprises. Most importantly, the French population’s savings must be mobilized to that end, while care must be taken that austerity policies curb neither household purchasing power nor business investment activity. Gallois makes the further point that “the Chinese industrial bulldozer, held in check in the USA by tariffs, is a systemic threat to European industry”, as he lays out a very welcome economic stimulus plan.
The article is downloadable only in French. It is not available in English.
