The study comes at a critical time. For three weeks, MPs have been investigating the taxation of the wealthiest citizens, and the Institut national de la statistique et des études économiques (Insee, The National Institute of Statistics and Economic Studies) published a report on Thursday, April 16, that is likely to fuel the debate. The report highlights both the redistributive effect of certain taxes and, even more significantly, that of welfare benefits and social transfers, but it also points to the limits of the French system: Despite all these mechanisms, inequality has “widened” in recent years, at least between 2020 and 2023, the period covered by Insee’s latest data. In other words, the French model appears to be less and less effective.
Insee is not alone in making this observation. According to the latest data from Eurostat, the European Union’s statistics office, the Gini coefficient – a measure of income inequality after redistribution – has increased significantly in France in recent years, reaching 30 in 2024. This now places France above the European average of 29.4, a new situation for the country.
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