6667
France to Unveil Controversial Economic Reforms
World Economy

France to Unveil Controversial Economic Reforms

Crisis-hit France was Wednesday to unveil a controversial package of reforms to unblock its stagnant economy, including a deeply divisive plan to extend Sunday opening hours for shops.
Emmanuel Macron, a former Rothschild banker, turned economy minister, will present the measures under the watchful eye of the European Union and Germany, France 24 reported.
The measures include opening up traditionally closed professions such as notaries and bailiffs and also opening up inter-city coach travel within France, and selling $12 billion in state-owned assets.
But it is the proposal to extend Sunday shopping that has touched off a firestorm of criticism, even among fellow members of the ruling Socialists.
Retail outlets may currently apply to local authorities to open on five Sundays per year, but Macron wants to expand that to 12.
“Do we want millions of tourists who come to the capital to leave us and go and do their shopping in London on a Sunday?” said Prime Minister Manuel Valls, who will co-present the report.
However, the left wing of the Socialist Party (PS) has said it will vote against the measures after a parliamentary debate expected in January, believing it “casts doubt over all the historical battles of the (political) left.”
In a PS memorandum sent to the economy minister and obtained by AFP, deputies said it was “not necessary to move beyond five Sundays per year across the whole nation.”
 
  Lift the Blockages
Emmanuel Macron has insisted the reforms are needed to “clear away the rigidities to allow our economy to function better.”
And the French economy is badly in need of a fillip. Growth was a sluggish 0.3 percent in the third quarter, after two consecutive periods of zero growth.
Unemployment is stuck at a record high 10.4 percent and President Francois Hollande has vowed not to stand for re-election if he fails to reverse the trend.
Meanwhile, France has found itself in hot water in Brussels and Berlin for its public deficit, which is expected to be above the three percent ceiling until 2017.
German Chancellor Angela Merkel took a pot-shot at Paris over the weekend, saying French reforms were “insufficient”, and Brussels has slammed the “limited progress” made by Paris.
“There is no doubt that the French economy suffers from a lack of competition in domestic markets and some of the measures proposed by the government would help to tackle this issue,” said Diego Iscaro, France analyst at IHS Global.
“However, the devil is in the detail,” he said, adding that there was “a relatively high risk of the bill being significantly diluted during the parliamentary process.”
Even if the reforms were approved and implemented in full, Iscaro said there were doubts over whether they would have a significant impact over the short term.”

 

Short URL : http://goo.gl/KC7u7l

You can also read ...

While China tries to alleviate its demographic crunch, the aging society means a pension shortfall.
Forget that image of sweatshops making all kinds of cheap...
Russia Economic Recovery Underway
Retail sales in Russia picked up in April, while real wages...
In 2017 banks had total mortgage lending of around $352 billion.
High levels of household debt are the greatest risk to Sweden’...
Greece at Crucial Point
Discussions are heating up over future debt repayments for...
Brazil CB Keeps Rates on Hold
Brazil’s central bank considered cutting interest rates last...
Peru Economy Strengthens
Economic growth in Peru strengthened in the first quarter...
EU Tells Italy to Cut Debt, Warns of Euro Spillover
Italy’s incoming government should aim to cut its heavy public...
Saudi Gov’t Told Not to Boost Spending
The International Monetary Fund urged the Saudi government not...

Trending

Googleplus