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The Organisation for Economic Co-operation and Development (OECD) has urged France to boost competitiveness and drive job growth. The latest economic survey of the country by the OECD found that pervasive bottlenecks have limited economic growth and maintained high unemployment over the past decades.
“The French economy has tremendous assets and considerable potential, but excessive regulation and high levels of taxation are gradually eroding its competitiveness,” said OECD Secretary-General, Angel Gurría.
“France has a unique opportunity today to implement a bold and ambitious reform strategy that will restore public finances, create jobs and boost firms’ competitiveness. A more productive and more competitive French economy is not only a national goal, but an important element of a stronger Europe,” Mr Gurria said.
While the OECD praised France for its recent labour reforms which may also increase opportunities for staffing firms, it said that changes to employment law should prioritise a new definition of economic dismissal, simplified layoff procedures, and more effective occupational training and job search assistance.
The organisation also urged for tax and transfer system reforms and said that public spending needs to be reduced to ease the tax burden.