PARIS (AP) — French President Francois Hollande pledged Monday to redefine France’s business model and declared what he called “a state of economic and social emergency,” unveiling a 2-billion-euro ($2.2 billion) plan to revive hiring and catch up with a fast-moving world economy.
The measures he proposed, however, are relatively modest, and he said they would not “put into question” the 35-hour workweek. With his country under a state of emergency since extremist attacks in November, Hollande did not seek to assume any new emergency powers over the economy.
In an annual speech to business leaders, Hollande laid out plans for training half a million jobless workers, greater use of apprenticeships, and aid for companies that hire young workers.
Hollande’s Socialist government has struggled to boost long-stagnant French growth or reduce chronic unemployment, which has been around 10 percent for years. His chances of winning a potential second term may hinge on whether jobs pick up before next year’s presidential vote.
Hollande stressed the urgency of updating France’s labor-friendly business model in an increasingly border-free, online economy. The measures included a loosening of France’s rigid working time rules, and a bonus of 2,000 euros to small businesses that hire young people.
He stressed the need to integrate youth from France’s troubled suburbs, including minorities who face job discrimination, into the global economy. High unemployment in France’s North African and African communities is seen as one of the factors driving some youths to violent extremism or the drug trade.
Some measures will be included in draft economic reform laws the government is presenting to parliament in the coming weeks.
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Well…OK.
France is in real trouble for sure. I can just see the republicans now using France as a model against Socialism
Fixed investment growth in France has been negative in France since 2013 and the household savings rate in France has gone from about 14% of GDP in January 2013 to 15.5% in January 2016. These trends, more typical of the Russian economy in hard times, was recognized long ago by David Ricardo. When people expect the government is going to increase taxes to meet rising deficits and pay off accumulated debt and the currency seems be getting devalued, they respond by accumulating wealth rather than increasing spending. As increased budget deficits are just another name for reduced public savings, private people and firms have to balance that with a corresponding increase in private savings. Some of this unfortunate situation goes back to Nicolas Sarkozy’s administration and the Austerity Craze of 2011, which flat-lined GDP growth in subsequent years. If you are French, and you remember the “Glorious Thirty” years of steady economic growth, this is just not very competent government. Whatever you say about France, and whatever party is in power, people expect good macroeconomic policies that stays above political fads. But here we go. The Socialists just saw the center-right win regional elections and this seems a panicked reaction to appear to be doing something that really isn’t doing anything. At the moment, foreign investors won’t touch the place with a ten-foot pole.
There goes the Euro!.. UK never jumped on the Euro system of currency.
Today the Pound is $1.43. Euro $1.09.
He probably has to declare an emergency in order to take certain steps. Even a President can’t just make wild changes without some strong reasoning behind them.
A state of emergency is pretty much the pinnacle of problems.