The OECD has just published its Economic Survey of France 2011. According to the report, a moderate recovery is underway though the recent recession is going to leave lasting traces on public finances and employment.
The report argues that structural reforms are crucial for successful consolidation and advances in growth potential:
1. The budgetary framework should be strengthened.
2. Deficit reduction should focus primarily on the spending side.
3. The tax structure should be rendered more conducive to growth.
Better employment outcomes would greatly ease the pressure on public finances, and boost social cohesion and living standards, the report argues. A clean break with the deterioration of public accounts must also be achieved to avoid jeopardizing macroeconomic stability.
The adoption of meaningful environmental policies, meanwhile, should ensure abatement costs for greenhouse gas emissions are minimized by harmonizing them across energy sources.
The report is available for the IESE Community here.