IMF tells France to get on with reforms and rein in spending

City A.M. Reporter
FRANCE must lower labour costs, open up regulated professions, deepen its labour and business reforms and cease tax hikes to get back to growth and bolster competitiveness, the IMF said yesterday.

A day after slashing its growth forecast for Germany, the International Monetary Fund said that France was set to contract slightly more than its current forecast and that unemployment would keep rising in spite of the government’s promise to reverse the jobless trend by year-end.

“The number of reforms initiated in the last six months speak well of the government’s understanding that France needs to be reformed,” the IMF’s mission chief for France, Edward Gardner, said, adding: “It’s a first step in a long process.”