Macron is looking to enhance France’s industrial base

Subject

France's manufacturing outlook.

Significance

France’s manufacturing sector has been the most attractive in Europe for foreign investors over the past ten years but the structural challenges within the sector, most notably the shift from manufacturing towards an economy based more on services, look set to deepen.

Impacts

• Plans to reindustrialise parts of rural France may attract investment, but getting people to live there will be difficult.
• The ECB is likely to loosen monetary policy, and manufacturers borrowing at lower rates would boost euro-area industry.
• The threat of social unrest in urban areas may deter potential investors.