twittertwitter  facebook  linkedin  youtube  instagram
Press release Paris, February 15
Discover the second edition of our barometer

Paris, February 15 2023 - While the European Union reveals its ambitions to boost the competitiveness of European companies and its industry, certain obstacles remain. The weight of production taxes, which companies must pay regardless of their profitability, is a real issue for competitiveness and economic dynamism, on both national and European levels.

The European Production Tax Barometer, created by the Institut Montaigne, with the help of Mazars, is an indicator which achieves a level of precision that has been unprecedented to compare and rank production taxes, applicable to France and its main European neighbors, based on legal grounds.

Following last year's work, the Institut Montaigne is today unveiling observed changes between 2020 and 2021 in a second edition. Does France remain the "poor performer" and keep its place in the global ranking? Is the overall European trend heading towards lower or higher production taxes? While Denmark enters the ranking and the United Kingdom leaves it, 9 out of 11 countries studied have seen a decrease in the share of their production taxes, with France (- 0,6 GDP points between 2020 and 2021) and Sweden experiencing a remarkable drop.

"This year again, France appears to be one of the poor performers in the European Union in terms of production taxes. Despite recent positive developments with the gradual elimination of the value-added tax (CVAE), there is still considerable room for improvement. This indicator therefore plays an important role in making these obstacles visible, which is essential for the competitiveness of our French companies," explains Lisa Thomas-Darbois, head of the Economy and State Action Department at the Institut Montaigne and author of the report.

Thanks to its comparative and evolutionary dimension based on the data and analyses of the previous 2022 barometer, this second edition stands out through more precise indicators,” says Elena Aubrée, Partner at Mazars Société d'Avocats.

A downward trend in European production taxes
  • Of the 11 countries studied, 9 have seen a decrease in the share of their production taxes, which demonstrates a shared desire to bolster the competitiveness of European companies.
  • Only Italy and Poland are experiencing an increase in the level of their production taxes due, respectively, to the Covid-19 related health crisis and of taxes on activities with a negative impact on the environment.
  • France in particular is experiencing a remarkable drop: the share of its production taxes will have fallen by nearly 0.6 GDP points between 2020 and 2021, notably due to the decrease in CVAE revenues over this same period.
The ranking remains unchanged
  • Sweden remains the country with the highest share of production taxes (with 9.9% of GDP),which is however explained by its role in financing the Swedish social system.
  • Despite a visible decrease in the weight of production taxes, France is still among the "poor performers" of the European Union, as its production taxes represent 3.8% of its GDP, well above the average of the countries studied, estimated at 2.5% of GDP. 
  • Moreover, France has a total amount of €95 billion in production taxes, nearly 4 times higher than Germany (€25 billion), despite German GDP being nearly 40% higher than ours.
Discover the second edition of our barometer
ABOUT Institut Montaigne |

Our mission is to craft public policy proposals aimed at shaping political debates and decision making in France and Europe. We bring together leaders from a diverse range of backgrounds - government, civil society, corporations and academia - to produce balanced analyses, international benchmarking and evidence-based research. We promote a balanced vision of society, in which open and competitive markets go hand in hand with equality of opportunity and social cohesion. Our strong commitment to representative democracy and citizen participation, on the one hand, and European sovereignty and integration, on the other, form the intellectual basis for our work. Institut Montaigne is funded by corporations and individuals, none of whom contribute to more than 3% of its annual budget.

Catherine Merle du Bourg
Communications and Press Relations Officer
+33 7 71 74 03 97

View this email in your browser



Institut Montaigne

twitter  facebook  linkedin  youtube  instagram
View this email in your browser


Institut Montaignetwitter  facebook  linkedin  youtube  instagram