French Economic Renaissance Gives Europe New Engine for Growth

Nov. 6, 2019, 5:00 AM

After years of measuring unfavorably against Europe’s economic powerhouse Germany, France may finally have something to crow about.

The euro area’s second-largest economy is outpacing its neighbor and the region as a whole—excelling in weathering blows from trade wars and weaker global momentum. Some of the divergence is due to fortuitously timed tax cuts and less reliance on exports, but it also reflects early dividends from President Emmanuel Macron’s reforms that aim to sow the seeds of longer-term growth.

Evidence that there’s more to the story than timing can be seen in the robust business investment that’s followed ...

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