Dear Josie,
Thank you for your question. As no one has assembled the list of
links you requested, I will do so:
A good overview of the French economy in 2004-2005 with in depth
comparison to the other "euro zone" countries (those who have adopted
the euro) can be found here from INSEE:
http://www.insee.fr/en/indicateur/cnat_annu/Pub_Meth/Overview.pdf
Here is a description of INSEE from their mission statement:
http://www.insee.fr/en/a_propos/connaitre/missions/mission.htm
The National Institute for Statistics and Economic Studies (Institut
National de la Statistique et des Études Économiques: INSEE) is a
"General Directorate" of the French Ministry of the Economy, Finance,
and Industry (MINEFI). It is therefore a government agency, whose
members are government employees irrespective of whether or not they
are civil servants (fonctionnaires). INSEE is subjected to
government-accounting rules: it is funded from the
central-government?s general budget; the Institute can also collect
revenues from the sale of its publications and certain kinds of
contracting work performed for other agencies.
A good example of the analysis found in the above document can be found on page 15:
"Since end-2000, French exports have been evolving less favourably
than those of the euro zone While the appreciation of the euro has
badly affected French exports, their disappointing performance can
also be assessed by comparison with countries sharing the same
currency experience. In volume terms, French exports have diminished
while those of the euro zone were stable compared with 2002 (including
intra-zone trade). A similar discrepancy had already been seen in
2001, with the cumulative deviation in the period from Q4 2000 to Q4
2001 reaching 4%. From 1995 to 2000, French exports and those of the
euro zone had, on the contrary, moved strictly in parallel (see Graph
1). The French snot exceptional, however, and remains more favourable
than that of Italy."
Or from page 29-30:
"Core inflation, calculated excluding prices of public services and
volatile produce, was 0.5 of a point lower (1.6% in 2003 as against
2.1% in 2002). This decline may seem small, given the appreciation of
the euro and the dissipation of the transitory effects of the move to
the euro as legal tender in 2002. In 2002, the move to the euro had
made a slight contribution to the price rise (see ?The French
economy?, 2003-2004 edition). This contribution had been put at 0.14
of a point for the overall index and mainly concerned everyday
consumer goods with low unit prices and the services that enter into
the budgetary headings used to evaluate core inflation. Taking just
these items, which account for 62% of household budgets, the
contribution of the move to the euro to the price rise was of the
order of 0.2 of a point in 2002, with no further contribution in
2003."
The abridged English version of the 2003-2004 edition of the above
report, which the 2004-2005 report cites, can be found here:
http://www.insee.fr/en/indicateur/cnat_annu/Pub_Meth/Overview03.pdf
The full 2002-2003 edition is here (in English):
http://www.insee.fr/en/indicateur/cnat_annu/Pub_Meth/french_economy_2002.pdf
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Here is a story from the BBC discussing the European Commission's
statements on the transition to the Euro:
http://news.bbc.co.uk/1/hi/business/1736938.stm
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The European Union has a website (perhaps biased) touting the benefits
of the Euro in general terms, not specifically aimed at France:
http://europa.eu.int/comm/economy_finance/euro/benefits/benefits_main_en.htm
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A Lexis-Nexis search turned up this article from Paris around the time
of the introduction of the Euro discussing the effect on the countries
bakeries:
Euro cash summary - Bakers not proven to have sought rise from euro,
AFX European Focus, November 6, 2001 Tuesday, ECONOMIC NEWS; GENERAL;
GOVERNMENT; MARKETS, 559 words, PARIS.
The lead paragraph:
" Bakeries and patisseries have been cleared by the French
economy ministry of unjustifiably raising their prices in conjunction with the
start of pricing their goods in euros.
A twice-monthly ministry survey established to check for excessive price
rises ahead of the introduction of euro notes and coins showed a "slowdown" in
bakery and patisserie price rises in recent weeks.
Previously, the survey had shown that bakery and patisseries prices rose 0.5
pct in early October after a 0.8 pct rise in September.
But the latest survey showed a "slowdown" in such increases, confirming a
general stability in prices, the ministry said.
In the service sector, price rises remain modest, while in retailing prices
are continuing to slow because of an increased number of promotions, it noted.
Many major French food retailer have agree to freeze prices from Nov 1, 2001
to March 31, 2002 in conjunction with the switchover from francs to the new
currency."
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This article discusses in a bit more detail the rise in consumer
prices in France just prior to the introduction of the euro:
French govt confirms price hike ahead of euro launch, Agence France
Presse -- English, September 2, 2001 Sunday, International News, 304
words, PARIS, Sept 2
An excerpt:
"France's economy and finance ministry confirmed Sunday that prices of
some staples were rising ahead of the introduction of the euro, but
dismissed suggestions they were spiralling out of control.
"There have been limited increases in prices, but there is no return
to inflation," the junior minister for consumer affairs, Francois
Patriat, told French weekly Journal du dimanche.
He was reacting to a report Friday from a French consumer magazine
warning that retailers had hiked prices on such staples as milk and
butter ahead of the euro launch, and that consumers faced further
increases before the January changeover.
The ministry confirmed a 0.5 percent price rise in July, followed by a
0.4 percent increase in August, resulting in an five percent overall
rise in prices compared to this time last year, according to the
Journal du dimanche.
The magazine, "60 Million Consumers," examined prices of a range of
210 products, from detergents to mineral water, and found that some
prices had shot up by as much as 41 percent between June 2000 and June
2001.
"Certain manufacturers and distributors have anticipated the
transition to the euro by boosting prices in major supermarket
chains," the magazine said, adding that increases could continue
through October.
Professionals in the retail sector agreed earlier this year to leave
prices unchanged between November 2001 and March 2002 to avoid charges
they were using the euro changeover to boost revenues.
However, the ministry pointed out that the launch of the euro as the
new currency in France and 11 other European countries in January 2002
was not the only reason behind the price rises.
According to the French national watchdog for competition, consumption
and fraud (DGCCRF), prices throughout France remain on the whole
reasonable."
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An article from Financial News also discusses the effect the
introduction of the Euro had on the thinking of those investing in
French business:
SEARCHING FOR EUROPE'S BEST OF BREED' FIRMS, Financial News, March 15,
1999, FEATURE-, 546 words
"The introduction of the euro has led to the elimination of currency
risk when investing across those countries which have adopted monetary
union. In addition, the European economies are becoming increasingly
interdependent as monetary union encourages companies to extend their
areas of operation."
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The "elimination of currency risk" is put another way in this article:
ECONOMIC POLICY, Business Recorder, July 14, 2001, 3146 words
"The introduction of the euro on 1 January 1999 eliminates the hazards
of fluctuating exchange rates and the costs of converting from one
currency to another - considerably benefiting both individuals and
businesses."
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The euro has also had an effect over time on prices of goods within
France, as mentioned by this article from the NY Times:
A Strong Euro With Few Admirers , The New York Times, May 9, 2003
Friday, Late Edition - Final , Section C; Column 3;
Business/Financial Desk; Pg. 1, 1395 words, By MARK LANDLER ,
FRANKFURT, May 8
"Economists note that a stronger euro gives Europeans greater
purchasing power, something that could help rekindle long-dormant
consumer spending. That would be vital to reviving the German and
French economies.
One byproduct of the rising euro has been an abrupt end to complaints
by people here that the introduction of euro notes and coins in
January 2002 had inflated prices at cafes, restaurants and
hairdressers."
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This article from the Daily Mail discusses the effect of the euro on
property in France:
Euro causes French pain, but Brits gain, DAILY MAIL (London), February
25, 2005, ED_1ST; Pg. 77, 1103 words, NIGEL LEWIS
Here is an excerpt:
" Properties once unavailable to UK buyers are now coming on to the
market as France's economy suffers, reports Nigel Lewis
ASEA change is starting to take place in the French property market
that could alter the way British people think of France as a potential
holiday home destination.
For the past decade or so, France has been popular because in rural
areas such as Languedoc, Provence, the Dordogne and Brittany four or
five-bedroom properties were available for under Pounds 150,000 - or
even less if you were prepared to roll up your sleeves and get stuck
into a refurbishment project.
At the other end of the scale, the country's southern coast is
wellknown for upmarket seaside resorts such as Antibes, Cannes and
Nice, where even a small apartment will set you back Pounds 400,000.
And you'll need at least Pounds 700,000 to buy a medium-size villa or
house near the sea.
Unlike in Spain, where buyers have a wide choice of properties from
the bottom to the top of the market, France has offered most of its
middle-market properties almost exclusively to its own countrymen.
'There is a strong and long tradition of owning or part- owning a
holiday home in France,' says James Rodwell, of builder MGM French
Properties. 'So until recently, almost all the new-build properties in
the South of France were snapped up by the French.
'Builders didn't really have to work hard to sell the properties, as
most were picked up by people simply passing by when they were on
holiday.' But as the troubled French economy-still struggles to pick
up after five years of sluggishness following the introduction of the
euro, many French builders are now hoping to attract more British
buyers to their developments.
One lure is financial: if you buy a new, rather than an old, property
in France, notary fees and stamp duty on a new home will add only
around 2.5 per cent to the purchase price. On an older property you
pay approximately 7 per cent."
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This article from Stategis in Canada points out that "[t]he
introduction of the Euro has increased competitive pressures on French
companies and the French economy."
http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr118498e.html
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This article from Columbia expresses the opinion that the introduction
of the euro has changed the landscape of markets for French
businesses:
http://www2.gsb.columbia.edu/courses/core/b6005/Studentpres/Pres1/McK%20Quarterly_An%20American%20Lesson%20for%20France.pdf
"The nations of Europe are overcoming the first obstacle; with
economic and monetary union and the introduction of the euro, the real
domestic market for French companies is, increasingly, Europe itself.
This new market will let French businesses generate sufficient
economies of scale to compete on an equal footing with their US
counterparts."
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Page 8 of this 2001 report from Crédit Agricole Group discusses the
effect of the introduction of the euro on the French economy:
http://www.credit-agricole.fr/ca/kiosque-eco/eclairages/--n0-84/Ecl84GB.pdf
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The US Federal Reserve published a report on the introduction of the
Euro in 1999, which discusses some aspects of French economy:
http://www.federalreserve.gov/pubs/bulletin/1999/1099lead.pdf
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This report from the Federal Reserve Bank of St. Louis discusses the
effect of the introduction of the Euro on the international bond
market, and includes analysis on EU countries including France:
http://www.stlouisfed.org/docs/publications/review/00/09/0009ck.pdf
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The French Ministry of Foreign Affairs has a discussion of the effect
of the introduction of the euro:
http://www.diplomatie.gouv.fr/france/gb/eco/eco03.html
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The French embassy also has a policy statement on the effect of the
introduction of the Euro, mostly in general terms:
http://www.ambafrance-us.org/news/statmnts/2001/franallem.asp
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You may also be interested in this article from the European Central
Bank that discusses the effects of the introduction of the Euro on the
APC (African, Caribbean, and Pacific) and CFA (African countries and
the Comoros) countries that used the franc:
http://www.ecb.int/press/key/date/1998/html/sp981027.en.html
More on the effect of the Euro on Africa can be found here from the UN:
http://www.un.org/ecosocdev/geninfo/afrec/vol12no4/euro.htm
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You may also find this Wikipedia page on the Euro helpful:
http://en.wikipedia.org/wiki/Euro
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For Google searches, I found this search string helpful:
"introduction of the euro" french economy
For Lexis-Nexis, I recommend using:
"introduction of the euro" AND ("french economy" OR "france's economy")
I hope you found this information useful. Please feel free to ask for
clarification.
-welte-ga |
