According to the latest Economic Survey of France conducted by the OECD, current estimates suggest that economic growth should stand at 1.7% in 2017. This represents an upward revision compared to the 1.3% forecast made by the OECD last June and is the highest rate recorded in six years.
Thanks to the effectiveness of the social protection system and the existence of a minimum wage, poverty is lower in France than in most other OECD countries, although it remains concentrated in certain neighborhoods where residents face multiple challenges, including hiring discrimination.
The Survey, presented in Paris by OECD Secretary-General Mr. Angel Gurría, identifies priority areas for future action. These include implementing reforms aimed at making the tax system more conducive to job creation and productivity, promoting greater inclusivity in the labor market, and taking action to improve the situation of populations in disadvantaged and marginalized neighborhoods.
According to the Survey, there are too many qualified individuals unable to find work, and significant educational inequalities hinder social mobility. The authors recommend simplifying the complex training system and expanding apprenticeships in vocational high schools by encouraging companies to train young apprentices.
To promote employment and productivity, labor legislation must provide greater flexibility for both companies and workers to negotiate working conditions and wages, the Survey indicates.
The Survey highlights that France’s public expenditure, at 56.4% of GDP in 2016, is the highest among all OECD countries, resulting inevitably in a tax burden with a high economic and social cost.
A long-term strategy is necessary to reduce public spending, ensure debt sustainability, and create fiscal margins to allow for further tax reductions and simplification of the tax system, while maintaining a high level of social protection.
