Michel Cicurel, the vice-president of the institute Rexecode and founder of investment group La Maison, argues that French presidential candidates are failing to address the fundamental issue of capital investment. In a recent interview with L’Express, the former head of the Compagnie financière Edmond de Rothschild stated that current political discourse remains trapped in outdated debates about labor, ignoring the urgent necessity of investing in innovation, productivity, and artificial intelligence to secure the nation’s economic future.
Cicurel, a graduate of the École nationale d’administration (ENA) and a former Treasury official, contends that while political leaders focus on domestic social issues, they overlook the global reality that modern economic strength depends on private investment. He pointed to the recent rise in French 10-year government bond yields, which surpassed 5%—a level not seen since 2002—as a sign that international investors are losing confidence in political leadership even as they retain faith in the resilience of French businesses.
The Shift from Labor to Capital
During the interview, Cicurel criticized the economic debate held on August 27 by the Medef, which gathered major presidential candidates. He argued that the participants focused exclusively on labor, describing it as a theme "from fifty years ago." According to Cicurel, current economic conditions require a focus on "intelligent" investment. He cited the healthcare sector as an example, noting that while France spends 12% of its GDP on health, it could achieve better outcomes through technology and artificial intelligence rather than simply increasing the number of medical staff or hospital beds.
Germany and the Changing European Economy
Addressing the broader European context, Cicurel expressed skepticism regarding the traditional Franco-German partnership. He characterized German industry as being focused on the “past”—specifically machine tools, chemicals, and internal combustion engines—while positioning France as better prepared for future sectors. He suggested that France should seek new technological and defense partnerships, potentially looking toward the United Kingdom for defense and Canada for technology, rather than relying solely on the existing European framework.
Addressing Structural Economic Challenges
To achieve the necessary growth—targeting an increase from 1% to 3% annually—Cicurel advocated for a broad privatization of the general pension system, reserving state-run schemes for the most modest incomes. He concluded by calling for a reduction in the size of the state, arguing that the country must move toward a model where private initiative and local decentralization take precedence over the traditional French reliance on centralized state authority.
