France remains a relatively statist country. Public expenditure amounted to 54.4 percent of GDP in 2003, and the state employs 25 percent of the workforce.
The country also remains awash in regulation and has striven mightily to preserve its overregulated politico-economic culture by adopting protectionist stances in global trading forums.
As a result, France has a persistently high unemployment rate and, according to the European Commission, was likely to violate the European Union Stability Pact 3 percent (of GDP) deficit limit for the third year in a row with a 2004 deficit of around 3.7 percent. Growth remains sluggish.
However, since the overwhelming re-election victory of President Jacques Chirac in May 2002, some progress has been made. A long-term unemployment benefit cut-off period for workers under 50 years of age has been reduced from three years to two.
New Finance Minister Nicolas Sarkozy has promised further government privatization. France’s biggest immediate economic problem is the government’s overly generous health insurance program, which has a deficit that is set to rise from 11 billion euros in 2004 to a staggering 29 billion euros by 2010.
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timeasmymeasure
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Date: 2005-11-08 10:53 pm (UTC)France remains a relatively statist country. Public expenditure amounted to 54.4 percent of GDP in 2003, and the state employs 25 percent of the workforce.
The country also remains awash in regulation and has striven mightily to preserve its overregulated politico-economic culture by adopting protectionist stances in global trading forums.
As a result, France has a persistently high unemployment rate and, according to the European Commission, was likely to violate the European Union Stability Pact 3 percent (of GDP) deficit limit for the third year in a row with a 2004 deficit of around 3.7 percent. Growth remains sluggish.
However, since the overwhelming re-election victory of President Jacques Chirac in May 2002, some progress has been made. A long-term unemployment benefit cut-off period for workers under 50 years of age has been reduced from three years to two.
New Finance Minister Nicolas Sarkozy has promised further government privatization. France’s biggest immediate economic problem is the government’s overly generous health insurance program, which has a deficit that is set to rise from 11 billion euros in 2004 to a staggering 29 billion euros by 2010.