French Finance Minister

June 25, 2019 in News Tags: ,

Paris makes economic policy in Brussels at the expense of the German foreign trade in France is growing annoyance over the robust German exports and the dominance of the German foreign trade in Europe. Recently, the French Finance Minister Lagarde said Germany must boost domestic consumption and better balance the structure of its economic growth. The successful German export economy is one reason why smaller EU States in many parts of the manufacturing sector were not competitive. At first glance, it seems, the French Finance Minister wants smaller EU States whose interested wants to give more weight to in Brussels as a lawyer. Look you probably own French economy under food a little more so Paris represents with its demands, a little to break the dominance of the German foreign trade, very. EUR/USD falls since the beginning of 2010. So it was also Christine Lagarde who recently said that a weak euro makes France for foreign investments more attractive.

In addition the French foreign trade as compared to the German foreign trade devaluation benefits far more from a euro. The German foreign trade could put itself at an exchange rate of EUR/USD 1.60 and expand world market share. This innovative – and high-quality products, which demand remains relatively constant price fluctuations is due. Economists are talking about a low elasticity, which entails a change in the price on the demand of such products. In addition you benefited by lower import costs, as prices for commodities such as oil and iron ore in US dollars will be charged. The continuous increase in productivity particularly in the German medium-sized companies in connection with the increase of the equity ratios, also using the reduction in corporate income tax, made even more German companies in the manufacturing sector in recent years to world market leader. You have more often almost no direct competitors in its industry in Europe. The main competitors come from the United States and Japan and increasingly China and India.

That France such dominance as disturbing feels, is understandable. However liberty of the French Government through a proper economic policy French SMEs to promote as Germany had done the corporate income tax, for example, by reducing. A euro depreciation would help the French foreign trade to gain market share, as better result would be about price reduction international to the course.

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