IMF calls on France to implement reforms

This week the International Monetary Fund called on France’s government to implement new measures to neutralise a high unemployment and government, not taking into account current projections proposed by President Francois Hollande, which caused a high way of protests in the country.

In the fourth part of the report about current situation in France, it is noted the economic growth in this year will reach 1.5% versus 1.1% forecasted in March. Then France’s GDP will rise by 1.75% a year. However, even if real paces of growth match forecasts, such paces won’t be able to provide necessary conditions to put impact on high unemployment and government debt.

The IMF expressed its concerns over economic growth on the background of such recently adopted ambiguous reforms.

Facing serious protests during the whole spring, France’s government made corrections to labour laws, and eased a process of hiring and discharging. However the corrected version of the project is far from satisfaction. The government is trying with the help of constitutional measures to bring the project to the National Assembly without coordination. 

The IMF thinks that new labour project can support growth of employment, expanding labour agreements and cutting level of uncertainty connected with discharges. However, France needs to project and adopt other measures for further easing of tough labour conditions and level those problems which can be seen with employment.