Live Markets: France better placed to weather energy shock than neighbours

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23/04/2026 11:38

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     FRANCE BETTER PLACED TO WEATHER ENERGY SHOCK THAN NEIGHBOURS

There's been no shortage of doom and gloom about the French economy in recent years, but, at least in terms of this particular global crisis, the euro zone's second largest economy looks better off than its neighbours, Goldman Sachs say.

There are two reasons why, analysts at the broker say in a note from late Wednesday. Firstly, France’s industry is smaller and less energy-intensive, and secondly its nuclear power production helps sever the link between electricity and gas prices.

France's nuclear plants account for 70% of all power production, having bounced back from outages and repairs in 2022.

That has other positive knock on effects. French energy prices being less exposed to surging oil and gas costs means France has only announced very limited energy-related fiscal measures, amounting to less than 0.1% of GDP, on Goldman's sums.

And incoming fiscal information has been encouraging, with the public deficit smaller than expected in 2025, at 5.1% of GDP compared to the government’s 5.4% target.

That's still high mind you, and the next big focus for France will be 2027's presidential election.

What that will mean for the economy is hard to judge since, Goldman say, it is unclear whether the next president would be able to secure an absolute majority in the lower chamber of Parliament, a requirement to implement their economic policy. And, for now at least, all the possible candidates' economic platforms are vague at this stage.

(Alun John)

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