Cheques energie

The government scheme to help poorer families with a heating allowance will start to send out cheques from this week. Households with a net taxable income up to 11000 euros will receive a cheque up to 277 euros. The actual amount depends on the number of people in the household and the fiscal "revenu de reference", which you can see on your "avis" from the tax office.
The poorest single householders (ie one person with revenu of under 5600 euros will receive 194 euros, two persons 277 euros).
The cheques will be sent automatically by post and people are warned that there may be scammers trying to "help" with claims or advice on how to spend it. The cheques should be used to pay fuel bills or buy insulation materials.

Pound rises

Sterling apparently rose to a two year high following the Labour party support for a new referendum if necessary. At around 1.13 euros to the pound this morning it is better than the 1.10 on offer recently. The rise is said to be the result of the possibility of a "no deal" receding, calming the currency markets.
The uncertainty caused by the Brexit debate over the last three years has caused the pound to plunge from around 1.35 to as low as 1.09 (typical bank or currency broker rates, not headline or tourist rates). A big factor in driving retired people back to the UK as their incomes have plunged, though selling your house is more affordable - if you can find a buyer.

Bosch under threat at Rodez

The Bosch factory at Onet le Chateau, Rodez, employs 1500 workers and supports about 10000 other businesses in the area. The factory manufactures diesel injectors and the downturn in demand for diesel vehicles has put the factory in danger of closing.
A delegation met officials of the Economy Minister yesterday to press for some recognition of the problems.
They proposed three lines of action: 1) a reversal of the "diesel-bashing" by government, 2) a campaign of "buy French made parts" to protect their output, 3) a longer term study of the options to safeguard employment on the site if Bosch invests in a new generation of injectors or decides to centralise production elsewhere.
Bosch has been active on the Rodez site since 1962 and is an important player in the industrial life of the area.
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French/Italian agreement

The Italian ship builder Fincantieri has wanted to buy the French company STX, builder of ships on the Atlantic coast. So concerned was the last French government that they nationalised STX to prevent the owners selling out. This does not accord with Macron's more liberal economics, nor his vision of European cooperation.
So an agreement has been reached which will essentially allow Fincantieri a 50% stake in STX, and the French government will "lend" 1% of its stake, giving the Italian company control. The stated aim of the new company is to be capable of building warships in a more efficient and economic way. Workers at the shipyards of St Nazaire are understandably worried that the group will privilege Italian yards and cost jobs in France.
This comes at the same time as another of France's "crown jewels", Alstom who build trains amongst other things, is being merged with Siemens its German rival. Is this European industry gearing up to meet "America First" competition?
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Has Hollande won his bet?

The President said he would "reverse the trend" of unemployment by the end of his term. So far he has been wrong almost each month, with unemployment growing or remaining static. But in September the total dipped below 3.5 million for the first time in some years, with the biggest fall in unemployed in almost 20 years.
The rentrée suggested that government policy was bearing fruit and that Hollande was meeting his objective. But will it be enough to win him the left nomination for next year's election? His ratings in the country suggest he couldn't win in a one horse race; indeed no politician from the left is even likely to get to the second round. And perhaps the "smoke and mirrors" of the September figures will reveal that far from 66000 people finding work, the majority moved into government funded training schemes, taking them out of the unemployment totals. One hopes that this training leads to jobs, but more economic growth than forecast may be needed.
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What's in a name?

Do you have a "Laguiole" knife? Strictly one which folds and has a bee symbol on the handle. Probably yours, like ours, does not fold and was made in China. But the Aveyron town has had some justice in its fight to keep the name as a "geographic indication" of production. The name was copyrighted by a private business some years ago as a simple trademark, under which knives of a similar design could be sold, as well as other household products, all produced anywhere. The cheese was already protected as with many food and drink products. But the trademark protection prevented other local makers using the name of their village on the knives they made. Now the high court has decided that the decision of a lower court that the name was common usage and could be used by the trademark owner to sell non locally produced knives was "wrong in law" and has asked the lower court to reconsider.
Local maire and businesses hope this is a step towards what they see as reversing the appropriation of their name.
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92 jobs to go in Gaillac

A company making high quality pvc window profiles in Gaillac, Alphacan, is to lose 92 of its 133 jobs. As part of a "re-structuring" 24 employees are to offered jobs at a factory in Sarthe and the 40 retained in Gaillac will be either group administration or research and development. The company says its need to re-structure is a result of a slow down in the building trade demand for its products. They also have interests in Italy and Croatia.
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TGV orders for Alstom

Alstom is France's leading manufacturer of locomotives, but has decided to close its historic Belfort factory where locomotives have been built for nearly 150 years. The government has entered into talks with the management and is ready to order directly (ie not via SNCF) 16 TGV locos, but which will not be used on high speed lines, but on inter-city lines.
Taken with orders from SNCF and the Paris region RER lines the factory should be able to continue in production. Alstom intends now to transform Belfort into a maintenance centre for locomotives, preserving most of the jobs.
SNCF is state owned but it is unusual for the government to buy material directly to preserve jobs in a company which is private. Opponents have mocked the decision, suggesting that to save shipbuilding the state could order warships to be used as barges on the Seine, or help Airbus by buying A380s for the Nice-Toulon route.
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Sales end on a low note

The six weeks of summer sales are coming to and end, but traders are gloomy at the prospect. The sales have not provided the boost to incomes that they hoped, especially in the clothing retail outlets. In Toulouse it is thought that security concerns have kept city centre shoppers away, though suburban boutiques are believed to have done better. Nevertheless, retail analysts conclude that an increase over last year of up to 2% is the norm, though household goods have fared better than clothing.
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That will do nicely (not)

We Brits love our plastic cards - credit cards, debit cards, store cards. It is a bit irksome that French banks seem to charge a lot for a card (35 euros or more) and lots of shops and services will not accept cards, but are happy to accept a cheque for small amounts.
The government in its latest Finance bill is putting more pressure on the use of cheques by reducing the period of validity from 12 months to six. French people use on average 37 cheques per annum, whereas in Germany it is less than 1 and in the UK 11.
Probably the question is governed by the banks charging businesses more for processing cards than cheques. When we were in business in the UK we were charged about 50p for each cheque we banked, with all the need to fill in forms to pay in etc, but could negotiate a good rate for cards with our bank (or even a different bank). Readers with businesses will know how it works here, but we cannot help thinking with the reduced number of bank branches and restricted opening times it must be simpler and less time consuming to use cards.
Of course there is still cash, if you can get it from somewhere, though you cannot (legally) pay more than 1000 euros in cash.
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CGT losing support

In a poll out this weekend (by Odoxa for Le Parisien newspaper) 67% of respondents say they have an unfavourable opinion of Phillipe Martinez, the general secretary of the CGT, whose union is spearheading the opposition to the proposed labour law reform.
Whilst French people generally agree with the right to strike, now only 42% are now in agreement with the actions being taken, and 66% of those asked fear a complete paralysis of the country.
Emmanuel Macron, the controversial Finance Minister seen as a right winger by most of the left, was confronted by CGT strikers yesterday. During heated exchanges the Minister suggested that France was being blocked by the demonstrators, not by the new laws. One presumably unemployed person remarked on M Macron's "3000 euro suit", to which he replied "the best way to pay for a suit is to get a job". Not too reassuring  when unemployment is at 10%. M Macron was an investment banker before joining the government.
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7 out of 10 oppose labour law reform

This subject is exercising minds throughout France and a day with many protests is expected on Wednesday 9th March. Myriam El Khomri is the Minister charged with this major reform, which is opposed by 70% of French voters according a recent poll. The proposals are opposed by unions and many government supporters because they are perceived as "liberal" - a term associated with Anglo Saxon style economics. Regulations making it easier to sack workers; limits to compensation; more flexible working weeks. More than 1 million people have signed an on-line petition asking the government to drop the reforms.
Jean Tirole, economist and Nobel prize winner at the Toulouse School of Economics, has contributed to an article in Le Monde which argues that the aims of the reforms are to make it easier for employers to offer permanent contracts of employment (CDI) rather than the much abused system of short term contracts (CDD). Employers, he says, will welcome the confidence that "certainty" gives them. Spain adopted a similar reform in 2012 and saw a rise in CDI of 300000 jobs, and reducing unemployment remains the government's top priority.
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Chinese puzzle at Blagnac

Photo MaxPPP

The privatisation of Toulouse airport involves selling a 49% share to a consortium headed by Chinese businessman Mike Poon. Now for some time Mr Poon has disappeared from view. The French news site Mediapart has revealed that the company set up to fund the purchase is no more than a shell based in some tax haven and that Finance Minister, Emmanuel Macron, refuses to confirm whether the 308 million euros agreed has in fact been paid.
Chinese media  are reporting that before his disappearance in May Mr Poon had resigned several posts amid allegations of corruption. Anti-privatisation groups in Toulouse are calling for answers but so far M Macron is remaining silent.
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Cash? No thanks

No more "loadsamoney"? Paying big bills with cash will be illegal from 1st September. A limit of 3000 euros which has existed for some years will be reduced to 1000 euros. It has become increasingly difficult for ordinary folk to lay their hands on big amounts, post offices requiring notice, banks needing special withdrawal cards for sums over 400 euros, low weekly limits for cash machines all making it difficult.
Since cash generally is behind the black economy it is hard to see how this will be policed, but a fine of 5% of the transaction could be imposed.
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Quelle catastrophe BBC2 10 o'clock

BBC journalist Robert Peston looks at how France has come to the point where 30% of voters are thinking of voting Front National only 3 years after electing a left wing government. It doesn't seem to matter if it is left or right as long as it is anti-austerity (cf Greece or Spain) and anti-EU (cf UK).
Looks as if it could be an interesting programme. BBC2, 22h00 French time.
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Skiing in the Pyrennees

Many readers and their families will be heading off to the mountains to ski during the half term holiday this week and next, but many of the Pyrenean ski stations are in financial difficulties.
A report by the local "Cour des Comptes" -  a sort of bankruptcy court - warns that the level of borrowing, often 300-400% of their revenue will lead to closure.
Uncertain snow levels, aging infrastructure, poor communications, lack of investment in other attractions are all given as reasons for the decline. The court suggests that the smaller stations group together to reduce costs and improve services and marketing. If you value your winter skiing on your doorstep now is a good time to go and support them - and have a good time doing it.
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QE by BCE

The value of the euro fell again yesterday as the European Central Bank (ECB - BCE in French) announced it was to buy 60 billion euros worth of bonds - effectively creating more money; Quantitative Easing as it is known (QE). The US and UK governments have used this device to promote their economies and it is controversial in the eurozone because Germany is opposed. The £:euro rate was at 1:1.32 yesterday.
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Renault to build in Algeria

Algeria imports about 400000 cars a year - though no indication of how many from France - and now that number will be reduced as Renault opens a new factory in that country. Initially about 25000 cars will be built, rising in time to 75000. The model is a the Renault Symbol, not available elsewhere. Unions here will be concerned that this is an exportation of jobs; Renault will see it as a new revenue stream.
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Is Hollande getting it right?

Three economic institutions have made encouraging reports in recent weeks, as well as the rating agencies keeping France's AA rating. The EU has agreed to accept the budget, saying it does not infringe  European fiscal rules, The OECD has said that France's plans offer the prospect of good growth in the next few years and now the World Bank has said France has made considerable progress in the last two years in making the country easier to do business.
In a study of 189 countries France has moved up from 38th to 31st. It seems that it generally takes 4.5 days to register a business (down 2 days in 12 months) but more than 5 forms to fill in. 31st may not seem too good, but Japan is only 29th and Germany 14th, so size of economy is not a great indicator.
France is now back to its pre-crisis level of 2007.
Singapore tops the league, followed by New Zealand and Hong Kong. USA no 7 and UK no 8 are also very business friendly.
Of course some will argue that easy for business is not necessarily good for workers.
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Trillions, a number unimaginable.

France's public debt topped the symbolic level of 2.0 trillion euros for the first time, according to quarterly data published by the national statistics agency INSEE on Tuesday.

Val says  this debt might put your finances in a better light.

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