6496
Nobel Laureate Tells France to Follow Swedish Reforms
World Economy

Nobel Laureate Tells France to Follow Swedish Reforms

Jean Tirole, the French Nobel Economics laureate for 2014 has urged his home country to follow similar economic reforms to Sweden, as he prepares to pick up his award in Stockholm later this week.
His comments came as the French government prepared to unveil a controversial set of measures to unblock its stagnating economy, Sweden’s The Local reported Monday.
These include Sunday trading for shops, opening up national bus routes and throwing open traditionally closed professions such as notaries and chemists.
The plans have attracted criticism both from those who argue that they are too radical and those who think that the reforms don’t go far enough.
Speaking at a news conference in Stockholm, Tirole said that France “should follow the example of countries like Germany and Sweden, which had difficult times and carried out a lot of reforms”.
“We should carry out reforms to put people back to work... and also reform the state as many countries have done,” he added.
His comments followed a statement from Germany’s Chancellor Angela Merkel, criticizing both France and Italy for reforming too slowly following the Eurozone debt crisis.
French Finance Minister Michel Sapin retorted smartly that “we are carrying out reforms in France not to please such-and-such a European leader but because it’s necessary for France.”
France, Europe’s second largest economy, is in dire need of a boost. Gross domestic product inched up 0.3 percent in the third quarter of the year and unemployment stubbornly refuses to come down from record levels.
Figures published on Friday showed unemployment in France stood at 10.4 percent in the third quarter and President Francois Hollande has said he will not stand for re-election if the jobless queues continue to grow.
Unemployment in Sweden is currently 7.5 percent and increased domestic consumption (more people spending at the shops) has fuelled economic growth.
One of the cornerstones of Macron’s reforms is permitting shops to open on more Sundays, in a bid to spur much-needed consumption.
Town halls would be allowed to grant trading licenses on 12 Sundays a year, compared to the current five Sundays annually.
In tourist areas and certain busy stations, the laws would be relaxed still further.

 

Short URL : http://goo.gl/WwXHXZ

You can also read ...

All three sides can’t agree on a few key issues.  Top of the list: The manufacturing of cars.
No meaningful progress is being made in NAFTA trade talks...
IMF Cautions Kenya on Rising Debt
The International Monetary Fund has cautioned that Kenya’s...
The rules say that EU countries should have budget deficits below 3% of GDP and public debt below 60% of GDP.
National budgets of six eurozone countries may break the...
AT&T-Time Warner Merger Case Politically Motivated
The US Justice Department’s lawsuit to block AT&T’s $85...
Gold Inches Up as Dollar Dips
Gold prices crept up on Wednesday amid a softer dollar, with...
Credit Tightening Dominoes Threaten Asia With Hidden Risks
With Asia’s economies humming along, consumer prices rising...
Mexico Boosts Minimum Wage
The bittersweet news for Mexico’s poorest workers: the...
UK Slashes Growth Projections
Britain slashed its official projections for economic growth...

Trending

Googleplus