French industry shrinking

Eric Trappier, CEO of Dassault Aviation, warns that the French industrial sector now represents less than 13% of the national GDP, down from 18% in Germany and 20% in the United States. He points to the loss of 1.9 million direct manufacturing jobs between 2000 and 2025, with some industries like machine tools and consumer electronics having effectively disappeared from the country.

Key industries in decline

The automotive industry exemplifies this decline, with Renault and Stellantis producing 80% of their vehicles in France in 2000, but now only 42%. The electronics industry has also vanished, with no smartphones or televisions assembled domestically. Meanwhile, the pharmaceutical sector has moved production overseas, creating vulnerabilities exposed during the 2020-2022 health crisis.

Structural barriers to revival

Trappier identifies three main obstacles to industrial recovery: high labor costs, excessive regulatory burdens, and bureaucratic delays. French manufacturers face an average hourly labor cost of 38 euros, compared to 34 in Germany and 28 in Spain. The country also adds 15,000 new regulations annually, increasing compliance costs for small and medium enterprises.

Challenges in funding recovery

The France 2030 plan, with 54 billion euros in funding, aims to revive national production. However, the Court of Auditors reports that 19 billion euros in aid remains unspent, highlighting the difficulty of distributing public funds. Rebuilding industries like automotive or electronics requires massive investments, often exceeding what the public sector can provide.

Comparing successful models

Germany maintains a strong industrial base by focusing on vocational training, regional industry clusters, and practical labor negotiations. The United States is also strengthening its industrial position through the Inflation Reduction Act, which provides direct tax incentives to green industries, a strategy more effective than French subsidies.

Risks of continued decline

Without action, France risks becoming overly reliant on imports for energy, health, defense, and food, a situation Trappier calls "economic vassalage." The industrial trade deficit reached 78 billion euros in 2025, increasing debt and weakening the currency. France lacks global leaders in digital, batteries, or industrial robotics, making it vulnerable to supply chain disruptions.

Social and regional consequences

Deindustrialization has led to high unemployment in regions like Lorraine, Nord, and the Seine valley, with rates above 12% and rising school dropout rates. Qualified young people are leaving these areas for service-based cities, causing demographic and social decline. Industrial jobs support more indirect employment than service jobs, further worsening the impact of losing manufacturing.

Call for political action

As the presidential election approaches, Trappier urges candidates to outline their industrial strategies and willingness to make budget sacrifices for reindustrialization. He asks what reforms they would implement in taxation, regulation, and administration. The answers will determine whether France can maintain economic independence or fall into irreversible dependence.