IP/06/1751
Brussels, 12 December 2006
Commission assesses progress with reform to boost growth and jobs in France There has so far been some progress in implementing France's National Reform Programme for growth and jobs, according to a European Commission analysis published today. The analysis is part of the Commission's latest Annual Progress Report on the Lisbon Growth and Jobs Strategy. The report will be submitted to EU leaders at the Spring European Council in Spring 2007. The Council will be invited to formally adopt recommendations aimed at helping individual Member States, so that all Member States can agree on what each of them needs to do. The Commission concludes that France has made some progress in the implementation of its National Reform Programme and of the commitments made at the 2006 Spring European Council. Against the background of a buoyant economy, France is continuing with its budgetary consolidation drive while at the same time seeking to increase its growth potential, notably through fresh commitments towards research and innovation. Its performance in relation to employment is by and large mixed.
The Commission identifies a number of strengths of the reform process in France: the establishment of competitiveness poles and of new structures for research and innovation appears particularly promising, as does the target of devoting 3% of GDP to research by 2010. The recent reform of the public finance regulatory framework ought to contribute decisively to better public spending management. The decline in unemployment, for the first time since 2001, is a positive development and the recent measures to help young job-seekers seem to be a step in the right direction.
France is recommended by the Commission:
to ensure the sustainability of its public finances through further budgetary consolidation and debt reduction. The meeting on pension systems scheduled for 2008 will have to hang on to the gains made following the introduction of the 2003 reform; to take steps to improve competition in the gas, electricity and rail freight sectors; to modernise employment protection and enhance lifelong learning to foster flexibility and security in the employment market and combat segmentation among contract types by making it easier to switch between temporary contracts and permanent contracts.
In addition, according to the Commission, it will be important for France to focus on: reducing the high level of debt, which threatens the sustainability of public finances when the ageing of the population is factored in and which, in the absence of increased budgetary consolidation, may necessitate further reforms; strengthening competition in the regulated professions; and enhancing the policies of improving regulation and encouraging entrepreneurship, notably as regards support for young businesses and promotion of the entrepreneurial spirit in society.
Background
The EU's Lisbon Growth and Jobs Strategy aims to reform Europe's economies to secure a prosperous, fair and environmentally sustainable future by ensuring that Europe is well positioned to take advantage of the opportunities offered by globalisation and to cope with demographic changes that will mean more older people and fewer young people of working age in our societies.
All Member States drew up National Reform Programmes in autumn 2005 and the Commission published an initial assessment in its January 2006 Annual Progress Report, identifying strengths and weaknesses.
At that stage, the Commission also proposed a set of firm commitments to be agreed by Member States in order to strengthen reform in four priority action areas: knowledge (education, R&D and innovation); unlocking business potential, especially for SMEs; getting more people into work; and energy.
Those commitments were agreed by EU leaders at the March 2006 Spring European Council.
In October 2006 Member States presented Implementation Reports on progress. The Commission's latest Annual Progress Report published today, includes 25 "country chapters", where the Commission aims to answer two simple questions. First, what progress have Member States made in implementing the measures in their original National Reform Programmes? Second, what have they done to reinforce their programmes, both in the areas which the Commission identified as weak and to take account of the commitments made by the European Council?
The Annual Progress Report includes the Commission's proposals for formal country-specific recommendations, which the European Council will be invited to endorse, so that the Member States can agree together on what each of them needs to do
The Annual Progress Report also includes a broadly positive evaluation of the overall state of reform of Europe's economy as a whole. The pace of reforms is picking up and those already implemented are starting to work. The current economic upturn provides a once-in-a-lifetime opportunity for further reform which can keep Europe moving into a prosperous and sustainable future.
For further details see:
http://ec.europa.eu/growthandjobs/index_en.htm
