1. France and the Great Recession David S. Park, Kathrine M. Hagen, Marque A. Jones, Nicholas J. Hosler

2. Government Background Semi-Presidential Republic (democracy) Executive Branch - President - Chief of State, Cabinet of Ministers Legislative branch - Prime Minister - Head of State, National Assembly, Senate Judiciary - State Council, Constitutional Council President appoints Prime Minister Prime Minister presents laws and policy changes - voted by Senate/Assembly In case of a tie Assembly vote is majority Prime Minister Appoints other ministers

3. Taxing and Spending Ministry of Finance and Public Accounts Prepares annual budget/taxes to present to parliament Ministry of Economy, Industry and Digital Responsible for forecasting/competition (works closely with above) Budget/Taxation voted on by legislative branch Voting held at annual meeting of French Parliament Presidential ordinance can force budget into effect after 70 days

4. Fiscal Policies Tax structure similar to United States, some differences Higher individual maximum tax rate (41% in 2011, 45% in 2013) National sales tax (VAT) Social levies Property, excise, wealth taxes Spending focuses on French wellbeing Social protection Health care Education Photo source pkfaudit.fr

5. Revenue Social security contributions (37.17%) Goods and services (24.08%) Personal income and other gains (18.57%) Stable since 2000 Photo source OECD.org

6. Expenditures General public services (31.19%) Social protection (21.34%) Education (16.77%) Economic affairs (12.82%) Stable since 2007 All as % of GDP Photo source OECD.org

7. Before the Crisis France had a small deficit between 2000 and 2007 -1.32% of GDP to -3.86% 2008 seemed stable as well at -3.18% 2009 saw a rise in the deficit Photo source OECD.org

8. Economic Impacts GDP falls $0.01 million ($US) in 2008, climbs back Financial institution debt-to-equity rises Household spending doesn’t decrease, but savings increase sharply, debt rises to 100%+ of net disposable income Unemployment rose from 6.5% to 9.2% between 2008 and 2010 Average wages increased by about $2,000 US Decreases in some government spending, increases in public welfare Government deficit doubled as a percent of GDP Government debt climbs to over 100% of GDP between 2007 and 2011 Tax revenue falls between 2008 and 2010, climbs to more than 2008 figure by 2014

9. Macroeconomic effects ●Reverse Supply Side economics ●Very strong until 2008 ●Severe credit crunch (like US)

10. Responses to the crisis How did the government respond to the crisis?  Increase in government spending  Introduced package of stimulus measures to accelerate planned public investment.  Focused on infrastructure projects and investments  Injected $15 billion in the French banking system.  Remained a mixed economy of with a high level of public spending and taxation.

11. Works Cited Edminston, W. F., and Annie Dumenil. La France Contemporaine.5th ed. Boston: Cengage Learning, 2014 Print. France Tax Guide 2013. Pannell Kerr Forster. 2013. Web. http://www.pkfaudit.fr/docs/PKF%20Tax%20Guide%20France.pdf "France - Unemployment Rate - Historical Data Graphs per Year." France - Unemployment Rate - Historical Data Graphs per Year. Web. 2 Dec. 2015. http://www.indexmundi.com/g/g.aspx?v=74&c=fr&l=en "French Financial Crisis ( 2008 - 2009 )." September 4, 2009. Accessed December 2, 2015. http://www.gsdrc.org/docs/open/hd584.pdf Government Expenditure on Education. The World Bank. 2015. Web. Data table. http://data.worldbank.org/indicator/SE.XPD.TOTL.GB.ZS/countries "International Financial Crisis - French Rescue Plan - President Sarkozy's Speech following Council of Ministers." La France Au Canada/France in Canada. Web. 2 Dec. 2015. http://www.ambafrance-ca.org/International-financial-crisis Jackson, James K. "The Financial Crisis: Impact on and Response by The European Union." Congressional Research Service (2009). Print.

12. Works Cited cont. Organisation for Economic Co-operation and Development. OECD.org. 2015. Web. OECD (2015), Tax on goods and services (indicator). doi: 10.1787/40b85101-en OECD (2015), Social security contributions (indicator). doi: 10.1787/3ebfe901-en OECD (2015), Tax on personal income (indicator). doi: 10.1787/94af18d7-en OECD (2015), Central government spending (indicator). doi: 10.1787/83a23f1b-en OECD (2015), General government deficit (indicator). doi: 10.1787/77079edb-en OECD (2015), Gross domestic product (GDP) (indicator). doi: 10.1787/dc2f7aec-en OECD (2015), Financial corporations debt to equity ratio (indicator). doi: 10.1787/a3108a99-en OECD (2015), Household spending (indicator). doi: 10.1787/b5f46047-en https://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG# The French Tax System. Ministère de l’economie des finances et de l’industrie. impots.gouv.fr. July 31, 2011. Web. http://www.impots.gouv.fr/portal/deploiement/p1/fichedescriptive_1006/fichedescriptive_1006.pdf "Welcome to the French Ministry for the Economy and Finance." Welcome to the French Ministry for the Economy and Finance. Service-Public.fr, n.d. Web. 28 Nov. 2015. "International Financial Crisis - French Rescue Plan - President Sarkozy's Speech following Council of Ministers." La France Au Canada/France in Canada. Web. 2 Dec. 2015. http://www.ambafrance-ca.org/International-financial-crisis