A domestic analyst firm says the ongoing euro crisis is one of the main reasons behind the closure of more than 1,000 factories in France during the past four years.
After reviewing the number of factories closed since January 2009, the French data analyst firm, Trendeo, announced on Tuesday that the auto industry followed by pharmaceutical companies is the worst hit organizations during the crisis.
The economic downturn in Europe is reported as one of the reasons behind the closure; the analyst firm also stated that the rise of the euro, compared with other currencies, has made it more difficult for the companies to export goods abroad.
In 2012 alone, 266 factories with 10 or more workers closed, which represents a 42 percent increase in the number of closures compared to 2011.
The closures have also affected the unemployment rate, as 24,000 workers were laid off in 2012, bringing the total number to 120,000 since January 2009.
Trendeo said that about half of the layoffs in 2012 came from the car-making industry, stressing that the situation is to worsen with PSA Peugeot-Citroen’s plan to cut 8,000 jobs and close its factory in Aulnay-sous-Bois, north of Paris.
France’s national debt has reach 90 percent of its gross domestic product (GDP), according to figures published by France’s National Statistics Institute (INSEE) in September 2012.
Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.