Increasingly expensive, why?

Increasingly expensive, why?

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Discussion

Balmoral Green

Original Poster:

41,761 posts

255 months

Monday 2nd November 2009
quotequote all
Year in, year out, France is getting more and more expensive. Forget the issue with the blatant profiteering and rounding up when they switched to the Euro years ago, and forget the exchange rate with Sterling.

Whether you look at the prices of stuff converted to Sterling, or in local Euros, why is so much so ridiculously expensive? Is there an economic reason?

It's been getting worse, year on year, with plain ordinary things costing two or three times the price of stuff here in the UK, and for many things, even more.

There are a few exceptions, like food in the supermarket and fuel, at similar costs to the UK. And eating out, whilst getting a bit pricey, is still not unreasonable. But everything else is just getting insane. I swear if the French had an equivalent to our pound shops, it would be the twenty Euros shop!

Don't get me wrong, I'm not tight, and I don't mind spending money, but seeing things that in the UK might cost say £5.99 or £7.99 stickered up in the shops at 50, 60, 70 or 80 odd Euros is just mind boggling.

What on earth is going on, and how do the French manage with it?

mogv8

836 posts

235 months

Monday 2nd November 2009
quotequote all
Yes it is pretty crazy sometimes, used cars seem a case in point. A 19 year old renault for euro 2k is one example I came across recently. It would be £3-400 over here.

I visit Limousin a fair bit and surrounded by forest, timber is still 3 times as expensive.

I dont have the answer though !

bored-of-coding

1,285 posts

204 months

Tuesday 3rd November 2009
quotequote all
I can only agree too .. I go over to my house quite a bit, and now bring everything I need (except food and drink!) with me .. I used to love the DIY Brico shops, but I hate having to go to them now, as by my reckoning, everything is about 3 times the price as here.
I too can't understand how they sustain such prices.

PottyMouth

470 posts

203 months

Tuesday 3rd November 2009
quotequote all
Really does depend on what you're buying.

Food/wine/cheese is still streaks ahead of the UK in terms of both cost and value for money.

The same goes for eating out.

And what about all the money you save on speeding fines? wink

bored-of-coding

1,285 posts

204 months

Tuesday 3rd November 2009
quotequote all
hmm .. I find I spend more on speeding fines in France these days ...

Deva Link

26,934 posts

252 months

Tuesday 3rd November 2009
quotequote all
French people hardly pay any income tax though.

justin-banks

193 posts

247 months

Tuesday 3rd November 2009
quotequote all
I must be living in a different France, the taxes, social, business, personal are ridiculous. It is actually getting too expensive to live in France now, I am heading back to the UK next year, had enough!
Justin

Deva Link

26,934 posts

252 months

Tuesday 3rd November 2009
quotequote all
justin-banks said:
I must be living in a different France, the taxes, social, business, personal are ridiculous. It is actually getting too expensive to live in France now, I am heading back to the UK next year, had enough!
Justin
Taxes on business are extremely high - we employ people in France. But the employees pay very little income tax or national insurance.

jason77

49 posts

264 months

Tuesday 3rd November 2009
quotequote all
Your telling me. We had our own business and in the first couple of years we made next to nothing yet still had to pay a ridiculous amount of tax and contributions - guess thats what you get from a socialist state.

Marcellus

7,164 posts

226 months

Wednesday 4th November 2009
quotequote all
Deva Link said:
justin-banks said:
I must be living in a different France, the taxes, social, business, personal are ridiculous. It is actually getting too expensive to live in France now, I am heading back to the UK next year, had enough!
Justin
Taxes on business are extremely high - we employ people in France. But the employees pay very little income tax or national insurance.
ok so employees are paid net most of the time true but then what about;
> taxe fonciere
> taxe habitation
> Taxe professionale (sp?)
> Wealth tax (don't know it's French name I claim poverty)
> property tax (ditto previous comments)



Regarding the OP I agreee the cost of living over here has just drifted up and up and up......

Deva Link

26,934 posts

252 months

Wednesday 4th November 2009
quotequote all
Marcellus said:
ok so employees are paid net most of the time true but then what about;
> taxe fonciere
> taxe habitation
> Taxe professionale (sp?)
> Wealth tax (don't know it's French name I claim poverty)
> property tax (ditto previous comments)
This is typical of the answer we get (plus lots of snorting) when we quiz our French people

The first 2 are property taxes - and together are the same as our council tax (domestic rates)

Taxe professionnelle is business rates - irrelevant for ordinary employees.

Wealth tax is payable on assets above €790000, so not an issue for most people.

Property tax - that's the first two, you just added another random tax to make it seem worse.

leyorkie

1,682 posts

183 months

Wednesday 4th November 2009
quotequote all
We pay less property tax in France for a much bigger house very big garden and swimming pool.
And we get more back in the local services provided.
The streets are clean, floral displays allround the town etc, all adding to a better environment.
France is more expensive compared to UK and prices have increased over recent years but we have to consider the exchange rate.
Last Saturday resturant bill 42 euros that's around £38 but convert to Francs 27, which in the good old days was £27. Now to the French 42 euros is still in their mind the same as £27.
Napoleon said we were a nation of shopkeepers and our society is driven by the retail industry, buy this , buy that, flog us your gold etc, France is nowhere as competative, so prices are usually higher. Compare mobile phones or internet for example
France is different, expensive and frustrating but we still love it, why?

Balmoral Green

Original Poster:

41,761 posts

255 months

Wednesday 4th November 2009
quotequote all
leyorkie said:
42 euros that's around £38 but convert to Francs 27, which in the good old days was £27. Now to the French 42 euros is still in their mind the same as £27.
This puzzles me, and I'm not sure I understand it?

You will often see the price marked in Euros, and then a little annotation at the bottom with the price in Francs. But surely this is at the exchange rate as it was when they switched to Euros? Unless there is a 'virtual' Franc that has followed currency fluctuations all along, and the conversion is being done at what the current exchange rate would be right now? surely the figure is as meaningless to the French in 2009 as me being on holiday in the US and comparing the dollar with the pound as it was in 1992 rather than at todays rate? So is a frozen in time exchange rate actually relevant or even remotely accurate, or am I being monumentally thick confused




Marcellus

7,164 posts

226 months

Wednesday 4th November 2009
quotequote all
My understanding is that when the Euro was introduced it was introduced at a specific rate.

You weren't able to trade Francs and Euros... if the 42:270 is correct then 1euro was worth 6.43francs.

Deva Link

26,934 posts

252 months

Wednesday 4th November 2009
quotequote all
Marcellus said:
My understanding is that when the Euro was introduced it was introduced at a specific rate.

You weren't able to trade Francs and Euros... if the 42:270 is correct then 1euro was worth 6.43francs.
Pretty close. Wikipedia says:
"The value of the French franc was locked to the euro at 1 euro = 6.55957 FRF on 31 December 1998, and after the introduction of the euro notes and coins, ceased to be legal tender after 28 February 2002 (although still exchangeable at banks)."

leyorkie

1,682 posts

183 months

Wednesday 4th November 2009
quotequote all
My point is that the value of the euro to the franc was fixed when we got 10 FF to £1 so my meal which cost me nearly £38 would appear to the French as the equvalent of £27. Sorry if this is not clear.
My car bought new in 2005 was 24,000 euros at the time around £17,000. The French model is still 24,000 euros and the UK version £17,000. Should they drop the price in France to 17,000 euros because the £ is so weak? I have shopping lists from French friends they all want our white goods and electronics eg ipods here at £100 are 149 euros.
It's crazy, it's stupid but in reality the pound in our pocket is just not worth a pound anymore.

smifffymoto

4,771 posts

212 months

Thursday 5th November 2009
quotequote all
I want a new mountain bike and for once France works out cheaper,whoopey.Shame everything else is so damn expensive.How do the French do it?

Marcellus

7,164 posts

226 months

Thursday 5th November 2009
quotequote all
leyorkie - £27 to £38 increase will be the effect of both £:€ exchange rate fluctuation which is well known plus general inflation...... in 2007 when I moved out here the rate was 1:1.55 now it's 1:1.10 so a €42 meal was the equivelent of £27 now it's £38.... so looking at that comparison there has actually been deflation!!

Electrical goods always are, always have been and always will be expensive in France..... cheaper in Switzerland and Italy for us so we pop there if an urgent need or wait until we're in the UK if not.

smiffymoto - I saved c£1500(30%) on a bike by taking a day trip back to the UK to buy my mtb so not always the case.

Deva Link

26,934 posts

252 months

Thursday 5th November 2009
quotequote all
smifffymoto said:
I want a new mountain bike and for once France works out cheaper,whoopey.Shame everything else is so damn expensive.How do the French do it?
As mentioned earlier - the average working French family pays very little income tax and virtually no national insurance. It's mainly paid by their employers.

heebeegeetee

28,960 posts

255 months

Thursday 5th November 2009
quotequote all
Balmoral Green said:
Year in, year out, France is getting more and more expensive. Forget the issue with the blatant profiteering and rounding up when they switched to the Euro years ago, and forget the exchange rate with Sterling.

Whether you look at the prices of stuff converted to Sterling, or in local Euros, why is so much so ridiculously expensive? Is there an economic reason?

It's been getting worse, year on year, with plain ordinary things costing two or three times the price of stuff here in the UK, and for many things, even more.

There are a few exceptions, like food in the supermarket and fuel, at similar costs to the UK. And eating out, whilst getting a bit pricey, is still not unreasonable. But everything else is just getting insane. I swear if the French had an equivalent to our pound shops, it would be the twenty Euros shop!

Don't get me wrong, I'm not tight, and I don't mind spending money, but seeing things that in the UK might cost say £5.99 or £7.99 stickered up in the shops at 50, 60, 70 or 80 odd Euros is just mind boggling.

What on earth is going on, and how do the French manage with it?
The Turkish fork-truck driver at work was saying exactly the same thing after he'd been home for a fortnight, and he lives out in the sticks, not say, in Istanbul where stuff might be dearer.

A mate has just been sailing off Greece and they found everything v. expensive too, couldn't get a shower for less than 5 quid anywhere.

I'm wondering if the Euro is in for a devalueing, but Turkey ain't in the Euro, so I don't know what the answer is...