François Hollande’s France is in a tight spot

France’s economic and social crisis seems endless, one can think while reading the major daily newspapers of Europe’s second largest economy. Growing insecurity and migratory crisis, further infuriating a people who is already worrying about its national identity, have been adding to the 6 million of unemployed and to the inability of the government to hold its main promise, namely “reversing the unemployment trend.”

The €90 billion new taxes decided by President François Hollande since his election in May 2012, according to Le Figaro, have not prevented the gross public debt (% of GDP) to increase by 4 percentage points in only two years, reaching 96.4% today. Worse, the Russian news agency Sputnik wrote, the Hollande administration would have made France €54 billion poorer in just three months following the cancellation of the Mistral contract with Russia and its aftereffect on the Rafale mega-contract that is no longer negotiated with India.

With 1% of economic growth expected for the year 2015 according to most optimistic forecast, France is mortgaging its future. Corporate investment becomes scarcer, the social climate is bad and the anger of French farmers reflects a context of general discontent.