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2005 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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Product Market Competition and Economic Performance

France is catching up with best practice in competition policy reform. However, other policy considerations often hamper the emergence of effective competition. Relatively weak competitive pressures obtain in a number of sectors, particularly in sheltered service industries. Restrictions on competition reduce productivity growth and hinder job creation in regulated sectors. Policy must focus on giving more weight to overall consumer welfare in the face of opposition from relatively small but vocal special interest groups. This chapter discusses reforms that would increase competition by: i) strengthening institutions and better clarifying...

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