On Tuesday 10 September, Emmanuel Macron inaugurated the new factory of the French pharmaceutical group Sanofi, in Neuville-sur-Saône, in the Lyon region. Entirely “modular”is capable of producing several vaccines at the same time. The opportunity for the Head of State to recall the importance of“The French industrial appeal”WHO “serves our need for sovereignty”. A few days earlier, the Flamanville EPR power plant in the English Channel finally began operations, twelve years late for this nuclear project. At the same time, the Servier laboratory has – for the moment – given up on selling its subsidiary Biogaran, the leader in generic drugs in France.
Are these various news items a sign of renewed dynamism in French industry? I’m not so sure. Despite the announcements, difficulties seem, on the contrary, to have been accumulating for several months, jeopardising the start of reindustrialisation which began in 2021 following the Covid-19 crisis. For the first time in three years, the balance of factory creation in the territory has been negative since April, and industrial jobs fell in June and July. Over a year, manufacturing industrial production fell by 3%, weakened among other things by the poor performance of the automotive and construction sectors, according to a note from INSEE published on 6 September. The number of business bankruptcies is reaching record levels, demand for capital goods is plummeting, investment capacity is being reduced by the level of interest rates and the cost of energy has degraded many sectors.
The government crisis this summer only increases the confusion. To the point that many industrial sectors are warning the new Prime Minister, Michel Barnier, of the urgency of the situation. They are all putting pressure on the future government and asking for the continuation of public aid and greater visibility of French industrial policy, at a time when the former governor of the ECB, Mario Draghi, is urging, in a report to the European Union, to invest massively in order not to fall behind the United States and Asia. The new head of the French government has certainly highlighted the urgency of the situation. “reindustrialization of territories” upon taking office, but Mr Barnier has already announced that there will be no “no miracle” and that the “first priority” of his government will be to reduce the public deficit.
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