France's Economy
Europe's Highest Public Spending
Why France's public spending is around 57 percent of GDP, what it funds, and the debate over whether it supports well-being or burdens growth.
France has among the highest public spending in the world.
Size
Public spending is around 57 percent of GDP, compared with around 45 percent in Germany and around 36 to 38 percent in the US.
What it funds
- Pensions: the largest item, around 14 percent of GDP.
- Health insurance.
- Family benefits.
- Unemployment insurance.
- Education and public services.
Taxes
France has high social contributions paid by employers and workers, and a high overall tax burden.
Benefits
- Low poverty after transfers.
- Universal health and childcare.
- Lower inequality than the US.
Criticisms
- High labour costs may discourage hiring.
- Persistent deficits and rising debt.
Debate
Supporters see it as a model of solidarity; critics say it’s unsustainable and reduces competitiveness.
A French worker's payslip shows large deductions for social contributions funding pensions, health and unemployment insurance.
France provides universal health, childcare and pensions.
- French public spending is about 57 percent of GDP.
- Pensions are the largest item.
- It keeps poverty and inequality lower.
- Critics cite labour costs and deficits.
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