OECD Report's cover
20 October 2014

OECD study

The Government’s reforms will have a significant impact.
Content published under the Government Valls II from 2014 26th August to 2016 11th February
 
Since 2012, the Government has been launching and announcing major reforms: together they could generate 450 000 jobs and an additional growth of 3.7 GDP points over the next ten years. This is emphasised in a report from the OECD (Organisation for Economic Co-operation and Development) on the impact of reforms in France. These significant reforms concern the labour market reform, the policy to reduce contributions (CICE – competitiveness and employment tax credit – and the Responsibility Pact), the simplification of the life of businesses and the territorial reform. Together, these reforms will have a “significant” impact on growth, with a 0.3% increase in GDP point each year over the next 5 years.
 
  • The CICE and the Responsability Pact alone could provide an additional 1.1 percentage point of growth within 10 years (0.5 percentage point in five years).
  • Territorial reform alone could provide an additional 1 percentage point of growth within 10 years (0.3 percentage point in 5 years).
 
This shows that the reforms are heading in the right direction, although of course much remains to be done. The OECD is encouraging France to “move forward quickly”. This is what the Government is doing by continuing along the path of reforms in particular with the energy transition bill, which is being debated in Parliament, or the business bill, the main lines of which have been presented to the Council of Ministers.