France: Lessons from Past Fiscal Consolidation Plans

By Edouard Martin, Irina Yakadina, Irina Tytell

April 1, 2011

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Edouard Martin, Irina Yakadina, and Irina Tytell. France: Lessons from Past Fiscal Consolidation Plans, (USA: International Monetary Fund, 2011) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes past fiscal consolidation plans and their outcomes in France. It covers the early attempts at fiscal consolidation in the 1970s and the 1980s (Plan Barre and Virage de la Rigueur), the first episode of medium-term fiscal consolidation in 1994-97 ahead of joining the European Economic and Monetary Union, and the fiscal consolidation under the corrective arm of the European Stability and Growth Pact in 2003-07. These experiences offer important lessons for the future, suggesting that binding constraints help focus policymakers’ attention and justify their actions; spending restraint needs to be shared and coordinated across all levels of government; and appropriate deficit targets could help in enforcing budgetary discipline in good times.

Subject: Budget planning and preparation, Expenditure, Fiscal consolidation, Government debt management, Public debt

Keywords: Fiscal policy, General government program implementation, Government, Government spending, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2011/089
Stock No:

WPIEA2011089
ISBN:

9781455233151
ISSN:

1018-5941

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