???? France Has a New Government: What Does It Mean for Startups? ??

After a couple of months of uncertainty, France finally has a new government in place. Personally, I think this raises some important questions for the future of startups in the country.

With Michel Barnier, former European Commissioner, being appointed as prime minister by President Emmanuel Macron, the new cabinet has been formed, including nearly 40 ministers and secretaries of state. It’s a mix of Macron-leaning centrists and members from the right-wing party, Les Républicains (LR), which Barnier himself belongs to.

In my view, this political environment has both opportunities and risks for the French startup ecosystem. On the one hand, we’ve seen positive signals like the appointment of Clara Chappaz — the former head of "La Mission French Tech" — who’s now the Secretary of State for AI and Digital. This clearly shows the government’s continued support for innovation, which is great news for startups. I find this reassuring, as it suggests that France is committed to staying competitive in the global tech space.

Over the past decade, the initiatives introduced in France — such as the launch of ‘La French Tech’ ??, the work of #Bpifrance ??, the establishment of Station F ??, and the implementation of stock option mechanisms ?? — have all been instrumental in helping the French startup ecosystem grow. Not to mention, global events like #VivaTech ?? have positioned France as a key player in Europe and beyond. These are things I’m really excited to see continue.

However, it’s not all smooth sailing. People like Marc Ménasé, founding partner of Founders Future, have rightly pointed out that while the government seems to understand the need to keep France competitive for international investment, there are concerns about potential tax increases. Personally, I share this concern. If we see changes to the "flat tax" or hikes in corporate taxes, it could discourage investment in startups, which would definitely slow down growth. ??

There’s also the broader issue of Barnier’s focus on reducing the budget deficit, which might lead to tough economic policies. The government has hinted at tax increases, and honestly, that could be problematic for startups that currently benefit from favorable tax conditions. It’s a delicate balance — and it could potentially limit the growth of new tech companies.

In addition to these challenges, the current economic climate is already tough. We’re seeing less venture capital available, and global uncertainty is making things harder for startups to secure funding. I’ve noticed that many companies are now focusing on profitability and long-term sustainable growth, which is great, but it also means they’re facing more scrutiny and difficulties with fundraising. ????

All things considered, while Barnier’s government seems to be pro-startup, I’m cautiously optimistic. There are still some potential hurdles, especially around tax reforms and fiscal tightening, that could slow down investment and growth. But for now, like many in the startup community, I’m waiting to see what concrete policies will be put in place. Fingers crossed! ??

#FrenchTech ???? #Startups #Innovation #Entrepreneurship #TechGrowth #Investment