French study urges €30bn cut in labour costs

<p>A report on France urges Paris policymakers to cut labour costs.</p>

The French government has received a 22-point report on why the country's economy was unable to compete on an international level with a key recommendation for a €30 billion (£24 billion) reduction in labour costs.

Furthermore, the document – which was authored by former head of EADS and the SNCF rail network Louis Gallois – proposed slashing social contributions paid by employers by €20 billion, as well as those paid by employees by €10 billion.

To recover some of these lost finances, the report advises increasing VAT and making cuts to public expenditure.

Additionally, International Monetary Fund has released its annual review of the French economy and noted that France should ease employment law to make it easier to hire and fire workers.

At close of play last night (November 5th), the Cac 40 in Paris was down by 1.2 per cent – or 43.9 points – to an index value of 3448.5 points.

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