WORLD PRESS TRENDS - World Association of Newspapers

FRANCE
Main economic indicators 1995-2001
1995 1996 1997 1998 1999 2000 2001
1 US$= 0.93 Euro at 2001 rate
Gross Domestic Product (Euro billion)
at current prices 1,183 1,213 1,251 1,301 1,354 1,418 1,464
% change 4.1 2.5 3.2 4.0 4.1 4.7 3.2
at 2001 prices 1,277 1,284 1,309 1,352 1,400 1,441 1,464
% change 4.0 0.5 1.9 3.3 3.5 2.9 1.6
Gross Domestic Product per capita (Euro 000)
at current prices 20.3 20.8 21.3 22.1 22.9 24.1 24.7
at 2001 prices 22.0 22.0 22.3 23.0 23.7 24.5 24.7
Population
Millions 58.1 58.4 58.6 58.9 59.1 58.9 59.2
Consumer Price Index
2001=100 92.6 94.4 95.6 96.2 96.8 98.4 100.0
% change 1.7 2.0 1.2 0.7 0.5 1.7 1.6
Ad.spend as a % of GDP
0.62 0.62 0.62 0.64 0.68 0.73 0.67
Advertising Expenditure Growth (%)
at current prices 4.0 2.7 3.8 8.2 10.3 11.6 -4.8
at 2001 prices 2.3 0.7 2.5 7.4 9.7 9.7 -6.3
Source: IFS, ZenithOptimedia
Research
Circulation is audited by: Diffusion Contrôle/OJD, a collaboration
of newspapers, agencies and advertisers.
Readership is measured by: The newspaper associations
EUROPQN (national newspapers), SPQR (regional dailies) and
SPHR (regional weeklies) have contracted IPSOS Médias to
measure newspaper readership.
Methodology: The continuous survey comprises 22,813 computerassisted
telephone interviews seven days a week between
6.00pm and 9.00pm. Respondents are all adults (15+).
Taxes
VAT on:
sales 2.1% advertising 19.6%
newsprint 19.6% plant 19.6%
composition 5.5% (standard VAT rate 19.6%)
Corporation tax is 33.3% for all companies.
There is a special fund system for investment (Section 39bis,
General Tax Code).
Passed in 1945, Section 39bis of the General Tax Code provides
a system that, by exempting from taxation funds set aside for
investment, makes it easier for newspapers to purchase
equipment and facilities. The following are exempt under this
system:
· Funds set aside during the financial year for
investment in equipment or facilities that are
strictly necessary for the operation of the
newspaper.
· Funds set aside as a reserve for subsequent
investment of the same kind.
Newspaper companies may also set aside a reserve fund exempt
from taxation within the following limits:
· 30% of the profits from non-daily publications.
· 80% of the profits from all dailies and regional
weeklies with a turnover less than Euro 84 million.
The reserve fund can only be used to finance part of the cost of
the equipment and facilities within the following limits:
· 40% of the average production cost of a non-daily
newspaper
· 90% of the average production cost of all dailies
and regional weeklies.
Since 1986, newspaper companies have been able to use the fund
to develop electronic information services to operate in
conjunction with their publications. Since 1997 the fund has been
used to (a) acquire land and majority stakes in printing
companies that use distribution networks, (b) compile databases
from information generated by the newspaper or publication
and (c) buy materials needed to exploit such data.
The Finance Law for 2002 postponed the expiration of Article
39bis to 2006.
Subsidies
In 2002 the finance ministry introduced a new subsidy to help
pay for the distribution of national daily newspapers providing
political and general information.
1999 2000 2001 2002
Euro million 62.5 64.6 63.4 68.0
In 1998 two new funds made loans available to publishers under
certain conditions:
1. The Multimedia Press Fund – The government has
created a fund to help the French print media
modernise and adapt to new information
technologies. This fund shall advance money to
print media companies, part of which must be
repaid. 40% of this advance may be rebated when
the publisher is able to prove a given project has
been completed.
2. The Modernisation Fund for daily newspapers –
This fund is financed by the proceeds of a 1% tax
levied on advertisers investing in the free and
commercial printed media (free and promotional
papers, brochures, catalogues, direct mailing and
so on). The objective of this aid is to finance
modernisation projects presented by publishers,
treated on a case-by-case basis. To be eligible for
this (direct) subsidy, projects have to be
innovative, outside of daily management, have
positive effects on employment and the financial
health of the company.
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 121