Purchasing power at a standstill
Despite their efforts, the purchasing power of the French is at a standstill. Before, each generation lived better than the previous one thanks to their work. A widely shared feeling of impoverishment is observed today in the middle class.
Political uncertainty has generated deep economic uncertainty. The French are worried and expect concrete measures. They no longer want to live on hope alone and wish to escape the spiral dragging them toward poverty and collectivism.
The French have reportedly grown poorer since the election of François Mitterrand.
Economic stagnation and business bankruptcies
In 1980, France had the same Gross Domestic Product (GDP) per capita as Allemagne. We no longer produce enough wealth. According to the Quintet firm, the standard of living of the French has not improved over the past fifteen years. Is the euro to blame? The question remains open.
Rising prices reduce purchasing power, which struggles to keep up with the cost of living. The standard of living is stagnating because net pay is not increasing enough in the face of skyrocketing inflation. The charges weighing on salaries aggravate the situation.
An evolution in the compensation of labor must be considered to improve the standard of living. The gap between gross salary and net salary is widening: only €54 remains out of €100 earned, compared to €60 30 years ago and €69 50 years ago.
Retirees and the future
Why so many business bankruptcies in France? Industry is wiped out by international competition and energy prices. The number of business failures reached 68,000 this year. Rising energy rates, high interest rates, and the end of state aid partly explain these failures. More than 6,000 jobs have been cut in SMEs over the past two years.
The Sécurité sociale financing bill provided for a freeze on retirement pensions for 2026, but this measure was rejected. Retirees will benefit from an increase starting in January 2026 on the basic scheme. The Agirc-Arrco supplementary scheme remains frozen. The increase will be limited to about 1%, according to Insee. This is insufficient to compensate for the rising cost of living, especially for energy and food.
With a €10 increase per month, retirees will barely be able to buy 2 kilos of endives. Not very cheerful!
The entire team of La Gazette du Var wishes you a happy holiday season.
Bernard Bertucco Van Damme