France in January 2026: the most important developments in economy
In France in January 2026, the most covered economic story was the suspension of flights to the Middle East. Around 23 January, Air France and KLM suspended flights to Tel Aviv and other regional destinations, including Dubai, as a precaution amid heightened tensions involving Iran, and other airlines adjusted their schedules too. Reports the following day said some Dubai and Middle East services were suspended and then resumed.
Trade tensions with the United States were the second main theme. Donald Trump threatened 200% tariffs on French wine and champagne, and Macron reportedly rejected an invitation to Trump's proposed Board of Peace for Gaza. Trump also made dismissive comments about Macron's standing. At the World Economic Forum in Davos on 20 January, Macron called the tariff threats unacceptable, said Europe would not give in to bullies, and encouraged the EU to activate its anti-coercion instrument. The European Parliament suspended its ratification of a trade deal with the United States. Trump and Macron also publicly disagreed over pharmaceutical drug pricing. Separately, the European Parliament took the Mercosur trade deal to court, with France, Romania and Poland leading a push for its postponement, and Macron called for more Chinese direct investment in key European sectors.
Among companies, Capgemini planned to cut up to 2,400 jobs in France and Societe Generale 1,800. On 28 January, luxury stocks, including LVMH, fell sharply after the company's results brought a more cautious outlook for the sector's recovery, and the broader Paris market declined. Danone and Nestle shares continued to slide after health warnings related to baby formula. The government cut funding for its France 2030 investment plan by 1.1 billion euros. The French navy intercepted a sanctioned oil tanker sailing from Russia and diverted it to Marseille.
by WorldBrief & Maksim Micheliov | AI-generated summary
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