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How reliant is the French economy on Paris?

Paris contributes more to France's economy than many other European capitals do for their respective countries, according to a new study.

How reliant is the French economy on Paris?
The La Defense business district of Paris. Photo: AFP

A study by the Cologne Institute for Economic Research has investigated how severely the income per head in a country would be hit if it had to survive without its capital.
 
The results showed that across Europe, capital cities were the focal points of their countries’ economies.
 
This “capital city effect” shows that in France there'd be a 15 percent drop in the French output per capita without Paris. 
 
This is a higher rate than in every other European country besides Greece, which would see a 19.9 percent drop in GDP. 
 
The Paris effect on France has “a pronounced impact”, the study noted, and can partly be explained by the fact that nearly a fifth of all French people live in the Ile-de-France region that includes Paris. 
 
This population is responsible for a third of the country's gross domestic product. 
 
Other European countries that were strongly dependent on their capitals included the Czech Republic, which was 14.2 percent worse off without Prague, Portugal, which saw a 13.7 percent drop without Lisbon, as well as Denmark, Finland and Sweden (all around the 12 percent mark without their capitals). 
 
Brits, meanwhile, would be 11 percent poorer without the financial muscle of London.
 
Germany was a notable exception on the list, actually seeing a 0.2 percent increase in GDP without Berlin. 
 
France was among eleven EU member states that recorded a level of GDP per capita above the EU average in 2015.
 
With a GDP per capita of 106 (against the EU average of 100), France ranked 11th in the union.
 
 
 

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BUSINESS

French court hands Amazon €90,000-per-day fine over contracts

French authorities on Wednesday slapped a €90,000-per-day fine on e-commerce giant Amazon until it removes abusive clauses in its contracts with businesses using its platform to sell their goods.

French court hands Amazon €90,000-per-day fine over contracts

The anti-fraud Direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF) service said the online sales giant’s contracts with third-party sellers who use its Amazon.fr website contain “unbalanced” clauses.

“The company Amazon Services Europe did not comply completely with an injunction it was served and it is now subject to a fine of €90,000 per day of delay” in applying the changes, the DGCCRF said in a statement.

It also urged the platform to conform with European rules on equity and transparency for firms using online platforms.

Amazon said the order would harm consumers.

“The changes imposed by the DGCCRF will stop us from effectively protecting consumers and permit bad actors to set excessive prices or spam our clients with commercial offers,” the e-commerce giant said in a statement.

“We will comply with the DGCCRF’s decision but we absolutely do not understand it and we are challenging it in court,” responded the e-commerce giant in a statement.

Amazon said the clauses that the DGCCRF has ordered removed had, for example “prevented the appearance of exorbitant prices for mask and hydroalcoholic gel during the pandemic”.

In 2019, Amazon was fined €4 million for “manifestly unbalanced” contract clauses with third-party sellers on its site in a case brought by the DGCCRF.

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