Money matters take centre-stage in France’s election

FOR THE past few months, rivals in April’s French presidential election have dwelt to excess on questions of national identity and immigration. This should soon shift. Emmanuel Macron, a former economy minister and one-time investment banker, is expected shortly to confirm officially that he is running for re-election. This is likely to turn the focus to the economy. Voters will be judging not only Mr Macron’s economic management since he took office in 2017, but how he and his rivals plan to improve competitiveness, job creation and incomes.

As the French economy rebounds, growth has exceeded expectations. After a contraction of 8% in 2020, GDP recovered to pre-pandemic levels last autumn. Growth in 2021 reached 7%, its fastest rate for over half a century, and brisker than in Germany, Italy and Spain. This was partly thanks to generous government support to keep businesses going, people in jobs and incomes protected. The injection of €100bn ($113bn), or 4% of GDP, partly from the EU’s recovery plan, has also helped.

On Mr Macron’s watch, France has also become a lot more business-friendly. He has cut taxes on businesses, replaced the wealth tax with a narrower property tax, introduced a flat tax on financial income and courted foreign investors. For the past five years he has stuck to the same fiscal policy and the...