French business creation surges as Macron promises 'start-up nation'

A surge in new business creations since President Emmanuel Macron become president last May lends some credence to his push to turn France into what he has called a "start-up nation".

New business creations jumped 17 percent in the three months to December over one year, INSEE's data showed, in what was the biggest increase since a 2010 spike after laws were changed creating a special legal status for the self-employed.

Transport and storage, real estate and business support were the sectors where business creation increased the most.

But a 14.4 percent increase in new businesses in the manufacturing industry shows France may be on track to halt a long-term decline in its industrial might.

Macron, a pro-business former investment banker, aims to foster entrepreneurship by setting a flat 30 percent tax rate on all capital income and also offering unemployment insurance for people who leave a job to go start a company.

He has also set up a fund holding 10 billion euros ($12.22 billion) in state assets that are intended to generate up to 300 million euros annually to be invested in breakthrough technologies.

(Reporting by Leigh Thomas; Editing by Michel Rose and Alison Williams)