French economy in need of structural makeover

France has been the second worst performing G7 economy after the US over the year to 1 July and doubts abound about whether recently re-elected president Jacques Chirac can bring about the structural reforms needed to turn it around. Chirac rode to success on the back of concern over right-wing opponent Jean-Marie Le Pen and the promise of sweeping income and corporation tax cuts. While the prospect of reduced income and corporate taxes should provide a boost to individuals and certain areas of the market, Raj Shant, head of European equities at Newton Investment Management, argues...