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There are two aspects to this :
a) Perequation : transfers from richer entities to poorer entities (this is especially true at the municipality level)

b) Jacobinism applied to decentralisation. Rather than giving the entities (departments, regions) the right to raise taxes themselves, the government prefers to keep them on the dole.

So it's certainly not true that there are 101 billion euros of net fiscal transfers; but certainly, there is a considerable amount of effective inter-regional transfer going on. Not sure if Normandy is a net beneficiary.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Fri Feb 13th, 2015 at 08:35:36 AM EST
[ Parent ]
I would gather it receives something, because the transfers are purely made on a population basis, whereas the taxes are still quite correlated to wealth and production.

Paris and the Ile de France are the clear losers here (but it's a bit complicated, because benefits are counted at the company's headquarters, usually in Paris, and not at the plant level).

And you forget that half the public expenses (so something around 25%GDP) in France are actually pensions and medical bills, which result in a transfer between young and productive people (Paris...) to unemployed, old or sick people (everywhere else).

by Xavier in Paris on Fri Feb 13th, 2015 at 11:10:57 AM EST
[ Parent ]


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