34 % of the total workforce in the hospital sector, compared with 23 % in spain and 21 % in germany. furthermore, in other countries, medical systems that focus more on prevention improve healthy life expectancy and limit the incidence of chronic diseases. spending on education is 0. 7 percentage point of gdp higher than the euro area average excluding france, partly due to the higher proportion of the population attending school in france. xxvi however, the way this expenditure is allocated between primary education ( under - resourced compared with other countries ) and secondary education ( relatively over - resourced in comparison ) is rather atypical. the proportion given over to administrative and operating costs is significantly higher than in other countries ( see the dark blue component in the left - hand chart below ). our high level of spending did not prevent a sharper decline between the pisa 2018 and 2022 surveys. in this respect, finland gets better value per euro spent. housing, which contributes an estimated total of approximately 2 % of gdp ( 0. 8 point of gdp more than the euro area average excluding france ), is also a major source of expenditure. six million households – one in five – currently receive housing benefits, xxvii which therefore appears to be means - tested to a much lesser extent than in other countries. these substantial amounts can ultimately push up market prices – including rents. on top of this, there are numerous tax credit schemes. the cour des comptes has therefore reported that france ’ s housing policy “ struggles to demonstrate its effectiveness ”. xxviii as a final example, which partly overlaps with previous ones, subsidies and transfers ( unrelated to social protection ) amounted to eur 210 billion in france in 2023, that is 7. 4 % of gdp compared to an average for the rest of the euro area of just 6. 0 %. their increase in france since 1996 has contributed 2. 2 points of gdp to the rise in public spending. among this expenditure, certain tax credits and support for apprenticeship programs would benefit from being more clearly targeted. more generally, there are grounds for reviewing certain acquired rights and for de - indexation. 2. 3 reopening the “ blind spot ” in the public debate : qualitative levers and public governance every year, the world bank publishes an index of government effectiveness, xxix which draws from a range of studies and surveys. xxx in particular, it focuses on the degree of independence from political pressures, public policy formulation and

results were largely attributable to retail banking business in france. consumer credit and home loans continued to grow, along with specialised financial services. in addition, falling interest rates had a positive effect on interbank business - which in france has always been significant - and drove down the net expense on these transactions. by contrast, capital market activities and asset management were hit by financial market turbulence, giving rise to substantial provisions in some cases. furthermore, for the second year running, fees and commissions contracted as a percentage of net banking income, falling to 26 per cent compared with nearly 30 per cent in 2000. 1. 3 diversification has helped french credit institutions to offset negative cyclical trends as in previous years, conventional retail banking activities cushioned the negative impact of trends in investment banking and asset management in 2002. on the international front, too, retail banking was a major avenue of development for leading french banks. it must be stressed, however, that the consolidated accounts of france ’ s largest banks were slightly less positive in 2002, even though the overall situation was satisfactory. in this regard, the dollar - euro exchange rate had an impact on the foreign activities of these banks, denominated in euros, which were also exposed to the negative earnings momentum of subsidiaries specialising in equity - related businesses. 2. french banks must buttress the elements that have allowed them to withstand cyclical contingencies for the past few years in addition to diversifying their business lines - and i am pleased to note that securities analysts are now taking this factor into account when assessing different banking industries - french banks have improved their capacity to withstand cyclical contingencies. that ability must naturally be maintained and strengthened. 2. 1 french banks used the healthy profits of the late 1990s to strengthen their capital base french credit institutions have entered the cyclical downswing on a sounder financial footing. to illustrate that point, a review of the french banking system since the late 1960s is included in the appendixes to this annual report. book capital is now equivalent to 5. 2 per cent of total assets, compared with 4. 2 per cent in the mid - 1990s. the commission bancaire is at pains to ensure that all french banks - small and large - build up their capital gradually but steadily until it well exceeds the regulatory minimum. furthermore, provision cover for doubtful loans now stands at 60. 4 per cent. the industry must pursue this prudential policy. in particular, as we have been urging for several years,