The OECD's survey of the French economy reviews recent economic developments and challenges, including the implications of population ageing for long-term fiscal sustainability, measures to improve potential output levels, and issues relating to public expenditure management. Findings from the survey include that, after several years of strong employment and output performance, French economic growth has slowed in the past 18 months with a negative output gap. The monetary and fiscal policies implemented to reduce the extent of the slowdown has prompted the European Commission to initiate its excessive deficit procedure. Population ageing trends pose a serious fiscal challenge with implications for the country's pay-as-you-go pension scheme and rising health care costs, and substantial reforms in these areas will be required to avoid an unsustainable build up of debt. Efforts to raise employment rates and potential output are also needed, as are tax and labour market reforms to facilitate the development of high-tech enterprises to help promote investment and higher productivity growth, privatisation measures and improved governance structures.
Series: OECD Economic Surveys
Number Of Pages: 180
Published: 30th September 2003
Publisher: Organization for Economic Co-operation and Development (OECD)
Country of Publication: FR
Dimensions (cm): 23.4 x 15.6 x 0.9
Weight (kg): 0.26