22 janvier 2014, Carnegie Europe, Sylvie Goulard répond à la question “Can Hollande finally save France”
The recent policy shift announced by French President François Hollande is remarkable given France’s traditionally high state intervention in the economic sector and expansive welfare state—even more so considering the president’s Socialist Party affiliation. Fighting increasing unemployment and low growth rates by disburdening French businesses and therefore strengthening the supply side of the economy sends the right message to France’s European partners and the markets. A strong and competitive European single market requires political innovation and consistent reform efforts in every EU member state, not least in the EU’s second-largest national economy.
However, it is too early to assess the reforms’ chances of success. Everything now depends on the timely and systematic implementation of Hollande’s promised “responsibility pact.” France faces several challenges. Unlike Germany in the early 2000s, when Berlin successfully launched similar reforms, France is in a weak eurozone surrounded by several countries suffering from the same problems of slow growth and undergoing the same far-reaching reforms. Moreover, French trade unions are less representative than their German counterparts, impeding the reconciliation efforts that will contribute to the success of labor market reforms.
