Wednesday, May 23, 2018
News

France has "unique window of opportunity" to reform - IMF

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

PARIS | Monday, Jul 17 2017 IST
France has a "unique window of opportunity" as growth picks up to tackle its weak public finances and high unemployment while reversing its decline in competitiveness, the International Monetary Fund said today.The IMF said after its annual country review the new French government's plans to focus on cutting spending was "appropriate" and also deemed its push to make its employment laws more flexible as "broad and ambitious".Meanwhile, President Emmanuel Macron's plans to gradually cut corporate tax to 25 percent from 33.3 percent while setting a flat 30 percent tax on capital income would make France more competitive while boosting investment, IMF staff wrote in the conclusion of their review, known as an Article IV mission."With a strong political mandate and economic conditions improving - growth is on track to reach 1.5 percent this year and further accelerate next year - there is now a unique window of opportunity for such a bold and comprehensive economic reform package," the IMF said in a statement.The IMF had previously expected the economy would grow 1.4 percent this year and 1.6 percent next year. The French government is targeting growth this year of 1.6 percent and 1.7 percent in 2018.Macron, a former investment banker who later served as economy minister, was elected as France's youngest president ever in May running on a largely pro-business platform and promises to reform the economy.A month later he won a commanding majority in parliamentary elections to help carry out his agenda.However, an official audit in July found the public finances running billions over budget.That left the government scrambling to come up with savings necessary to cut the public deficit to 3 per cent of economic output and meet an EU cap for the first time in a decade.The IMF said that would not only require major, across-the-board spending freezes this year but a further "exceptional effort by historical standards" again next year to hit the government's deficit target of 2.7 per cent. REUTERS AD1831

-- (Reuters) -- C-1-1-DL0108-976599.Xml

Watch News Videos

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE WORLD NEWS
Venezuela expels US envoy...
Meeting with Kim may be delayed: Trump...
Massive manhunt underway for 2 murder su...
Polish writer Olga Tokarczuk bags Man Bo...
Polish writer Olga Tokarczuk bags Man Bo...
Manchester attack: City remembers arena ...
More...
 
INDIA WORLD ASIA
BJP to protest JD-S, Congress forming go...
Sterlite Copper expresses sorrow over vi...
BSF not first line of defence but first ...
BrahMos supersonic missile successfully ...
KCR sets target of June 2 for cheque dis...
CM Naidu demands PM Modi's answer on Spe...
More...    
 
 Top Stories
Venezuela expels US envoy... 
CSK beat SRH by 2 wickets to book r... 
BSF not first line of defence but f... 
Pentagon to appoint new US commande... 
BrahMos supersonic missile successf... 
Panama City shooting suspect barric... 
KCR sets target of June 2 for chequ... 
F-35 stealth fighter jets see first...