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Michel Gabrysiak

Contributor / President of the Finance Foundation

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Michel Gabrysiak founder and president of the Finance Foundation, has contributed to the consolidation of the European capital markets.

As a journalist, writer and asset manager Michel Gabrysiak closely followed the ups and downs of finance and economy.
On CNBC he presented a weekly talk show called Capital Ideas, discussing financial topics with CEOs, Central Bankers, regulators, politicians.

The Finance Foundation believes that money has to be invested in shares, listed or not, and create medium long term dividends and capital gains. To day it is not so.

The french Public Investment Bank's leaders Jouyet and Dufourcq are right to resist politicians whims

04/22/2013 | 10:10am US/Eastern
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Lakshmi Mittal, powerful industrial tycoon and adept businessman, has been dishing out some home truths. The cost of steel production is 20% higher in France than it is in Spain.

Not in Indonesia, or somewhere as predictable, but in Spain, within the Euro zone.  

This is a clear sign that the entire structure of France's heavy industry is being left behind by the competition and that it is becoming indispensable to reconvert it from top to bottom.
 
The way of working, labour costs, the weight of state environment, the duration and pace of work.
 
In short, everything!
 
Florange the Arcelor-Mittal steel plant, as it is, is no longer profitable and must either reconvert itself towards other industries, or close down. That's the harsh reality of current world economy. France can't afford to isolate itself. It's up to the state to encourage initivatives, be they from entrepreneurs or industrialists, that's its role.   
 
But subventions and investments from the state will amount to nothing other than wasting taxpayers' money if simply put towards filling the gaps.
 
Unfortunately this evidence based reality is not getting through some French politicians' heads.
This certainly seems to be the case with Ségolène Royal, president of the Poitou-Charente region. She rants and raves against the new Public Bank of Investment. she 'demands' that the latter invest in businesses that are losing money. She threatens executives with all sorts of thunder. 
 
Jean-Pierre Jouyet and Nicolas Dufourcq, President and General Manager respectively, have for answer that they are there to invest in businesses, launch into the conquest of new markets, create new jobs and not to fill the gaps.
 
They are right.
 
If France wants to get out of the rut in which it finds itself, it must invest in its future and above all, stop politicians from getting involved in financial and industrial decisions with taxpayers' money.

 

Michel Gabrysiak
© The Finance Foundation 2013
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