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Paris cinema that stayed open during the war closes due to coronavirus

One of France's most iconic cinemas is to shut its doors for the month of August because so few people want to risk seeing movies on the big screen in times of coronavirus.

Paris cinema that stayed open during the war closes due to coronavirus
The Grand Rex cinema in Paris will close its doors in August. Photo: AFP

Managers at the enormous Grand Rex in the centre of Paris – which remained open throughout World War II – said Monday Hollywood studios were also to blame for holding back the release of so many of its summer blockbusters.

The Federation of French Cinemas said Monday the double whammy was crippling the industry as they demanded state aid to help them through the crisis.

“Between the drop in admissions (because of the coronavirus) and the lack of fresh American films that traditionally are a big summer draw, we have decided to close our doors from August 3rd,” the Grand Rex's manager Alexandre Hellmann told AFP.

“We will lose less money by closing than by staying open with this depressing box office,” he added.

With 2,700 seats, the seven-screen Grand Rex's largest theatre is one of the biggest in Europe with a 300 square-metre screen.

Many French cinemas have been all but empty since they were allowed to reopen after an eight-week lockdown last month. 

The cinema federation appealed to banks and landlords to give their members leeway, saying it was “absolutely necessary that the government also take urgent action to refinance” the sector.

Blockbusters pulled

Social distancing rules means cinemas are only ever allowed to be half full.

And audiences have mostly stayed away despite a poll finding that nearly a third of the country's population was keen to get back in front of the big screen.

Several cinema managers told AFP that the postponement of “Top Gun 2”, “Wonder Woman 1984” and Christopher Nolan's spy drama “Tenet”, as well as the Disney big-budget family movie “Mulan”, had helped kill the buzz they were counting on to draw people back.

“It is much tougher than we imagined,” said Aurelie Delage, manager of the six-screen Cinemascop Megarama at Garat in western France.

It is so grim in fact that “I am not looking at the figures,” she told AFP.

“This can't last.”

But the lack of competition from Hollywood has helped some smaller French films make an impact at the box office, with the comedies “Divorce Club” and “Tout simplement noir” (“Very Simply Black”) helping to push admission through the one-million barrier last week for the first time since the end of the lockdown.

Several big French releases have also been put back to September and beyond.

A study last week showed the French box office down almost 70 percent on the same period last year with only arthouse cinemas bucking the trend.

Yet the traditionally cinephile French have still been far more enthusiastic about returning to cinemas than their neighbours.

German cinema entries are down to just 17 percent of normal levels and the situation in Spain is even more catastrophic at just 13 percent, according to the Comscore study.

 

 

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JOHN LICHFIELD

OPINION: France’s economy is far from doomed, but not quite booming either

Depending on who you ask, France's economy is either booming or doomed - John Lichfield takes a look at who is right and where French finances are heading.

OPINION: France's economy is far from doomed, but not quite booming either

France is booming. France is also doomed. Take your pick.

On a much-visited French news site Le Figaro this week, consecutive stories collided head on.

The first story reported that the annual ‘Choose France’ conference will bring a record number of foreign investments to French soil in 2024 (56 projects worth €15 billion). France is the most attractive country in Europe for foreign investment for the fifth year in succession.

The second story – an essay by the political commentator and pollster Jérôme Fourquet – said that the French economic model of the last 40 years, had “reached the end of the road and left the country in a cul-de-sac”.

France no longer “made anything”, the essay said. The economy was being kept alive by state and consumer spending, funded unsustainably by twin deficits of trade and public finance.

Which is true? Both, up to a point.

The Choose France foreign investment conference in Versailles this week will be the most successful since President Emmanuel Macron launched the project six years ago. France opened 200 more factories than it closed last year, returning to a modest trend of “re-industrialisation” interrupted by the Covid and Ukraine crises.

Jérôme Fourquet’s essay was brilliant but also over the top. It ignored some of the positive developments in France of recent years.

It suggested that France “made nothing” but also admitted that the country was a world leader in arms, cosmetics, perfume, luxury goods and wine.

France, Fourquet might have added, is also one of the world’s largest exporters of cereals. It holds a major part of Airbus, the world’s most successful plane-maker. Unlike the UK, it is still a train-maker and a car-maker, although both industries have declined.

All the same, the essay made good points about the “French model” created unconsciously over four decades by governments of Right and Left and only timidly changed by Emmanuel Macron’s Centre in the last seven years.

Fourquet defines the French model as “state-consumerist”, a mixture of excessive public spending and taxation and generous pensions and welfare payments which allow most French people to live reasonably well. Unfortunately, the high taxation is never enough to cover the public spending and the consumers consume more from abroad than the country exports.

The result is twin, expanding deficits in public spending and the balance of payments which cannot be sustained indefinitely.

In 2003, France’s accumulated state debt was the equivalent of 63 percent of annual GDP. It is now 110 percent of GDP. The annual service charge is about to overtake education as the single biggest item in the state budget.

In 2006, France’s trade deficit was €4.3 billion. In 2023, it was €99.6 billion (admittedly inflated by the high cost of oil and gas).

Fourquet says the cost and bureaucratic weight of the French state make creating businesses – and wealth and jobs – more difficult than in other EU countries. This is covered up by more state spending which, in turn, sustains consumer spending which, in turn, boosts the twin deficits. A vicious spiral.

He concedes that Macron has tried to chip away at the state in the last seven years. The President has also splashed the cash on pet projects and has done little to reduce the regulatory burden.

Rather than lighten the entire system, Macron suspends rules and norms when he wants to get stuff done (such as the rebuilding of Notre Dame cathedral). The success of his foreign investment drive is also partly based on “keys in hand” offers of low or no-regulation factory sites which are not always easily accessible to domestic investors.

Some of those criticisms are justified. Macron has not been the revolutionary that he promised to be in 2017. He has been a plodding state reformer, extending with some success the job-friendly policies introduced by President François Hollande. France being France, neither man gets any credit.

There are signs that the economic downturn late last year (and the explosion in the budget deficit) may have been a temporary set-back as Macron insisted. Growth in the first three months of this year exceeded expectations at 0.2 percent of GDP. Jobs are being created again. (More than 1 million extra jobs since pre-Covid days).

High energy costs are crippling business across Europe but they are lower in France than elsewhere. The boom in foreign investment in France has tended to be high in value but low in jobs. The industrious and energetic minister for industry and energy, Roland Lescure, says that is now changing.

One of the projects under discussion at Choose France is a home-grown plan for a €1.6 billion solar panel factory in the Rhône delta which would create 12,000 jobs.

So is it boom or is it doom?

Neither. There has been a gradual, positive shift in the French social-economic model in the last seven to ten years which Jérôme Fourquet plays down or ignores.

Macron promised to do far more but he has had to surmount to two international crises (Covid and Ukraine) and to adjust to two domestic revolts (Yellow Vests and pensions reform). His unpopularity is partly explained by his failure to sell a convincing narrative of reform; it is also explained by France’s obsession with “reform” (in the abstract) but hatred of all “reforms” (in detail).

But what are the alternatives? All the opposition forces, from far-left to far-right, offer policies which would preserve or worsen an unsustainable status quo.

Macron’s final three years are unlikely to achieve much in the way of new reforms. A recovery of the economy might warm attitudes to Macronism (a big ask) and allow his would-be successors in the Centre to block Marine Le Pen in 2027.

Otherwise, Le Pen’s zombie economics – extra spending, no new taxes, breaking the European single market – could tip a heavily indebted France into the abyss.

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