France's finances are not in good shape – to put it mildly.
This situation is certainly not new: to be convinced of this, it is enough to recall the fact that our country's last surplus budget dates back to 1974. Concorde was preparing its first commercial flight, Gérard Ford succeeded Richard Nixon at the White House , Valéry Giscard d'Estaing had just entered the Elysée, and Jean-Pierre Fourcade was newly appointed Minister of Economy and Finance. It was another era.
Half a century later, nearly 3,000 billion euros in deficits have accumulated and there is an urgent need for action. In 2025, the State and social security are expected to spend around 184 billion euros more than their revenue allows. Prime Minister Michel Barnier sounded the alarm: “We must do better, with less”.
Foreign companies established in France want to be constructive but they nonetheless remain realistic: the situation is very worrying. The worst is never certain but it could happen if France does not make the right decisions and if only short-term solutions are adopted.
Three priorities are particularly close to my heart:
- In a context of tougher global competition, we must firstly protect the attractiveness policy put in place since 2017. The pro-business policy has borne fruit, but these achievements remain fragile: half of foreign investors plan to suspend their investments initially planned in France in 2025, due to the climate of tax and regulatory instability. THE
Current budgetary choices risk putting an additional brake on investments. - We must then reform our country to continue to make it more competitive and to free up value creation in France. This involves, in particular, a reduction in public spending and a reduction in excessive tax pressure on businesses.
- We must finally choose innovation, in a “play to win” logic. Let's identify areas where we can be best and invest heavily to make a difference.
Artificial intelligence is one of them: we believe that France has the necessary assets to play a major role in this area, provided that it gives itself the means. The stakes are immense, the situation is difficult, but the opportunities remain real.
This is the whole meaning of the messages that I wish to convey within the framework of the 2024 edition of the States of France: it is today imperative to restore trust between public authorities and businesses in order to work effectively to the search for ambitious and pragmatic solutions.
All our efforts must focus on strengthening the attractiveness of France and Europe!
Reda Guiha is president of Pfizer France
