IMF sees no end to French jobless crisis this decade

France’s economic reforms do not go deep enough to halt long-term decline and may not cut unemployment from double-digit levels by the end of this decade, the International Monetary Fund has warned.

The IMF called on president Francois Hollande to slow the pace of fiscal tightening next year to avoid an economic relapse, pouring cold water on claims that a fresh cycle of healthy growth is now under way.

KlingonOffTheStarboardBow: Hilarious. The IMF and Lagarde pontificating about France. What did SHE do to halt the decline when she was French Finance Minister? In competent, pontificating, crony windbags. And Hollande's govt has not got a CLUE. - LOWER taxes - CUT the size of teh state. - CUT bureaucracy - 3650 pages of Employment Law compared to Switzerland's 70 - the Fren ch elite is INSANE

peter:  Until France realises that they have a culture that actively discourages small business start ups, that takes so much in social charges to support an overblown government sector with more job creation schemes than you could throw a stick at,all paid for by the dwindling amount of business tax collected . A massive black economy even though they will not admit it. Then they are going only one way and it's not uphill.

Macsquiff: Quelle surprise! What are the options Ambrose?  A "right winger" like Sarkozy didn't get to grips with the French idyll and the working practices of the socialist utopia. The far right's answer is to try and get back to 1955 (bit like UKIP ). All French politicians since De Gaulle have failed France but have successfully conned the French people that the French way of life is affordable and justifiable with German cash and to neuter any competition with a bureaucratic EU.  Hollande is an economic retard. He is enacting Ed Balls' plan b with gusto and the forecast for France is the same as the rest of Club Med - disaster.  There isn't anyone in the French political establishment who is prepared to tell the truth to the citizens of France (electoral suicide) so let the markets and the dole queues do it for them. C'est la vie 

geoffyjoe: Oh, the very crème de la crème of Europe has figured out that Hollande's policies are making the situation worse. Thanks for nothing. We knew it the day he took office.

monte_carlo: It's not difficult to understand. 1. Too many people employed in the public sector. 2. Average retirement age for men 59.7 years. 3. Employment laws that discourage small employers from taking on all but the absolute minimum of staff. The French government will not tackle these problems. To do so would be election suicide.  

Pesmo: I bet they don't have zero hour contracts either in France ?

realworlder: As employment costs are so high for permanent employment, nearly everyone else is on zero hours contracts. Apart from the 12 percent who are on zero hours, full stop.

TediUSA: Socialsm,what do you expect?

TheAceOfSpades: They've run out of other people's money.

donr1x: Tediusa…self indulgent right wing philosophy too if not the main cause of the mess. NOT just France

gelert: No people can compare for self-delusion like the French. Their capacity for this stretches back for centuries.

clandulla: France suffers from the most moronic labour laws anywhere on the planet. All they have done is encourage people to work 'on the black' and seriously discourage employers from taking on additional staff. However, the problems arising from labour inflexibility that afflict France in an extreme way also affect the rest of the EU to a lesser extent. The Germans and the Scandinavians manufacture and export high quality products that are not particularly price sensitive. The French and Italians also do the same on a much smaller scale but not enough to allow them to escape from the lack of competitiveness caused by Europe's massive welfare costs. The statistics say it all. Europe has around 8% of the world's population, generates approximately 25% of the world's GDP and is responsible for around 50% of the world's 'social' expenditure or welfare. That may be good news for theoretical socialists but, in a highly competitive world, paying out such a disproportionately large amount for welfare is a hell of a lot of lead in the European saddlebags!

busmanj: The three biggest manufacturing economies in the EU are Germany, Italy and Britain, in that order. Then France. Italy could be well off the number two spot by now, conceivably - seen any figures?

christof: This article totally ignores the cost of employment, in particular the numerous "cotisations" heaped on the employer that augment the labour cost to more than 60% of the salary. Workers are hired as a last resort and artisans help each other rather than get in the onerous system. This is not unique in France as other European countries load the employers with ridiculously high costs so unemployment will remain high until sense prevails--- some hope !!

rastusctastey: About twenty years ago we employed a part time femme de ménage to help us clean our house in between the departure of one group of students and the arrival of the next for our residential "A" level French courses. She received the minimum wage which at the time was 27 francs per hour but the total cost of employing her was 55 francs per hour added to which she had to have holiday pay and redundancy pay when we found we could not afford to continue to employ her.  Since then we have done all our cleaning ourselves. When the state decided that for each hour that a cleaner works it must receive more money than she does things have gone seriously wrong and of course this opens wide the door to the black economy without which, I am sure, the French economy would not work at all.

alastairsnare: This French unemployment problem isn't a problem for anyone from that country who is young and knows a bit of English. As my many French colleagues will testify there are plenty of jobs for French people (even if their English isn't perfect) in London. Come to the UK, Frenchies!

Kneel_b4_Gromitt: Hang on… Didn't the last article state that EU had just returned to growth ????… If the IMF state that France's jobless figures are only going one way and that France are steadily losing ground to Italy and now Spain, please tell me how one of the biggest members of the EU is only heading downwards that the EU is now out of trouble and happy times are on the horizon…

leonb_09: The IMF is headed by  people who continuously swear that the average man and woman is overpaid when in fact it is THEM who are grossly overpaid!…

Croydon:  IMF salary structure http://www.imf.org/external/pubs/ft/ar/2012/eng/pdf/webtable54.pdf

gelert:   And the head of the IMF is a…no, don't tell me !

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