France: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

July 24, 2019

Preview Citation

Format: Chicago

France: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France, (USA: International Monetary Fund, 2019) accessed December 25, 2024

Summary

This 2019 Article IV Consultation discusses that the French government revamped vocational training and professional development to foster labor market participation, especially for low-skilled workers, following key labor tax and labor code reforms enacted in its first year in office. In prioritizing the recommended reforms, the report highlights that the importance of carefully assessing the trade-offs and the proper sequencing of structural reforms and fiscal consolidation. The government’s structural reform agenda is being put in place and growth is expected to gradually return to its potential level over the medium run. However, risks have risen, related to a disorderly Brexit, trade tensions, and a softening of activity in the euro area, but also to a slowdown in the domestic reform momentum. Building on the ongoing government reform agenda, policies should aim at addressing France’s structural challenges—high public debt and spending, rising private sector indebtedness, high unemployment, inequality of opportunity, and sluggish productivity.

Subject: Expenditure, Fiscal policy, Fiscal stance, Labor, Public debt

Keywords: Authority, Banking sector, CR, Enforcement authority, Europe, Fiscal stance, France-Report on the Observance of Standards and Codes, Global, ISCR, Labor market participation, Money market rate, Reform, Unemployment benefit reform

Publication Details

Pages:

98
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/245
Stock No:

1FRAEA2019002
ISBN:

9781513508450
ISSN:

1934-7685

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