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OECD Economic Surveys: France 2005

image of OECD Economic Surveys: France 2005

This 2005 OECD Economic Survey of France focuses on three key challenges faced by France: making the fiscal system sustainable, improving labour market performance, and product market competition. The chapter on the fiscal system includes annexes on ageing and health care expenditure and reforms to the health care system. The chapter on labour markets includes annexes showing the evolution of employment protection legislation and analysing collective bargaining reform of April 2004.

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Key Challenges Facing France

This chapter outlines the key challenges facing the French economy. Although a modest economic upturn seems to be established, low growth and, especially, high unemployment characterise recent economic performance. The government has taken numerous initiatives to encourage growth and employment, but many of these will at best have only short-term effects and the need to intensify structural reforms has to be recognised. Three key challenges are identified in this chapter: i) to ensure the medium-term sustainability of public finances while improving the structure of the tax system to improve incentives and reduce costs;...

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