The French economy and other financial issues for Brits living or enjoying holidays in France

Cash and plastic rule in France, just as they do in the UK, so whether you are on your holidays in France or are residing permanently in your French house, gite or apartment, you will find these are the most convenient method of payment for almost everything. Cheques remain popular, however. Online banking is increasingly used by people living in France to organise regular household bills and transfers.

Living in France - the Euro

The franc was replaced by the Euro in France in January 2002 and is no longer in circulation.

Living in France - credit and debit cards

All major credit cards (Mastercard and Visa) and debit cards (Carte Bleue or CB) are accepted in France. ATMs are widely available, even in small towns, and you can use your four-digit pin number.

Living in France - cheques

Although the use of cheques is reducing, they remain a popular method of payment. However, there is no such thing as a bank guarantee card in France, so you will need to show photographic proof of identity when paying by this method in a store. Bouncing a cheque is illegal in France.

Living in France - TVA (VAT)

The usual rate of TVA is 19.6%. Reduced rates of 5.5% apply to essential goods and certain types of publications, and 2.1% on some medicines, all newspapers and some theatrical performances.

Living in France - travellers´ cheques

Travellers´ cheques have become rather passe in France. While they are secure, they can be inconvenient - especially if you are on your holidays in France. You will need to find a bank that is prepared to change them. Some will refuse to do so.

Living in France - banking hours

Official banking hours are 09.00 - 17.00, Monday to Friday, but some (mainly in large towns) open on Saturday mornings or on a mid-week evening. If your French house or holiday home is located in a small town, you may find your bank closes for lunch.

Opening a bank account is a fairly simple procedure. If you are living in France as a resident, you need either your passport or your carte de sejour as well as a recent utility bill in your name. If you are not resident but own a French house or other property, or even if you only make regular visits to the country, you may also find it useful to open a French bank account. In these cases you will need to show a recent credit card or bank statement and a utility bill, showing your address in the UK. Many banks in France have special accounts for English-speaking expatriates.

The main banks are Credit Agricole , BNP Paribas, CIC , Le Credit Lyonnais, Societe Generale and Banque Populaire. Some UK high street banks also have a high profile in France: Barclays and HSBC.

The French economy

After some years in the doldrums, the French economy has shown signs of recovery since mid-2005. GDP growth for 2006 is forecast to reach 2.1%, according to both the OECD and French government, exports have increased and the unemployment rate has shrunk slightly in 2006. Despite its domestic problems, France is ranked as the sixth-largest economy in the world.

France holds the award for the world´s highest productivity per hour worked, but it´s GDP per capita is significantly lower than in the USA mainly because it has a low percentage (68%) of its population aged 15-64 in work. Unemployment has been a major feature of French life for years -- the rate has not been below 8% for over 20 years - and while students delay their entry into the labour market as long as they can, middle-aged workers have (until recently) been encouraged to take early retirement.

In the face of fierce resistence, the authorities are now trying to introduce reforms to pensions, the health system, and employment legislation.

In the meantime, France is the world´s fourth-largest importer of manufactured goods, the number one tourist destination, and the fifth-largest exporters of manufactured goods. The latter include machinery and transport equipment. Other important French exports agricultural products including wine.

France has an important aerospace industry (led by Airbus) and, having previously invested heavily in nuclear power, it is now the most energy-independent Western country. As a consequence of being able to produce more than three-quarters of its own energy needs through its nuclear power plants, France is also the smallest producer of carbon dioxide of the G7 group.