Energy crisis and sanctions against Russia cause the closure of more than 55,000 companies in France

Published at: 07/01/2024 10:10 AM

Through a specialized publication based on data collected at the end of December by the Banque de France, more than 55,000 companies closed in that country in 2023. The cause, according to international agencies, could be the energy crisis and sanctions against Russia.

Statistics released by the regulator show that on average 55,492 companies faced bankruptcy or liquidation in the last 12 months. Although the increase in registered closures was significant, the Bank of France noted that the level remains below the annual average of 59,342 bankruptcy filings registered between 2010 and 2019. During the years of the pandemic the number of closures dropped significantly, almost half of the current figures.

According to the report, it was mainly small and medium-sized enterprises (SMEs) that were most affected by the closures in 2023. Companies, which employ up to 250 people, accounted for the vast majority of the total, with 55,435 closures.

At the same time, medium and large companies with more than 250 employees also experienced an increase in closures, the regulator said, adding that their number reached 57, double compared to 2022.

Last year, Europe as a whole faced a serious energy crisis caused, according to international analysts, by sanctions against Russia due to the special military operation to demilitarize and denazify Ukraine. On January 3rd, the head of the Patriots party, Florin Philippot, announced that it is necessary to withdraw restrictive measures against Russia to restore the French economy.

Mazo News Team