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SIDEBAR IMF gives thumbs up to Macron's labour law reform plans

Europe
21.09.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Paris (dpa) - France‘s economic recovery is speeding up, and President Emmanuel Macron‘s reform programme should improve the country‘s long-term prospects, the IMF said on Thursday.

Buoyant corporate investments, a rebound in housebuilding and solid consumer demand are all contributing to GDP growth expected to reach 1.8 per cent next year, the Washington-based International Monetary Fund said in its annual report on France.

As protesters across the country took to the streets on a second day of mobilization against Macron‘s plans to make the labour code more flexible, the IMF said that implementing the new president‘s labour market reforms and fiscal strategy would be the key challenge.

The IMF said the labour law reforms, due to be signed into law on Friday, should enhance flexibility for individual business.

The government‘s planned moves to reform unemployment insurance and vocational education - which have not yet been fully fleshed out - would also be necessary to bring down the high level of structural unemployment, the IMF said.

Planned cuts in company taxes would also help make France more competitive.

The IMF estimated that France‘s unemployment rate would drop from 10 per cent last year to 9.5 per cent this year and 9 per cent in 2018.

 

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