Special report analyzes shortcomings of french economy

Special report analyzes shortcomings of French economy

It is presented by the former head of the aircraft and armaments manufacturer EADS, louis gallois. Prime minister jean-marc ayrault will receive the report requested by the government.

Six months after the socialists’ election victory, president francois hollande continues to struggle with rising unemployment, weak economic balances and a deficit-ridden budget. The head of state has already announced that a "competitiveness pact" should bring about a lasting improvement in the country’s situation. To this end, he wants to introduce comprehensive reforms, for example in labor costs, before the end of november. Employers demand relief of 30 billion euros.

Benoît hamon, minister of social economy attached to the ministry of economy, told the radio station europa1 on sunday that the implementation of such a demand would be tantamount to a "shock to purchasing power". Hamon pointed out that the gallois opinion was a contribution: "it is the government that governs."

The mood in france hardly seems to facilitate reforms. Prime minister ayrault recently outraged party colleagues and trade unions by calling the abolition of the 35-hour working week "not a taboo subject". Ayrault immediately rowed back: as long as the left is in power, the regulation will remain in place. The 35-hour week is not the cause of the economic problems.

According to a survey of investors in 14 countries by the auditors BDO international, the socialist government also creates uncertainty. Hollande had already conceded that the current regulations do not encourage production in france.

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