Macron Wins IMF Backing for ‘Ambitious’ Plans to Reform France

President Emmanuel Macron won support from the International Monetary Fund for his strategy of labor market reform and deficit cutting.
“The government’s ambitious reform program could go a long way in addressing France’s longstanding economic challenges—persistent fiscal imbalances, high unemployment, and weak external competitiveness,” the IMF said Monday in an annual report on the country.
While the backing of the Washington-based Fund for a reform agenda is not in itself surprising, the extent of the positive language is unprecedented for any French government in recent years.
Macron, who won office in May on promises to overhaul the labor market, restrain the budget deficit and remake the pension system is now grappling with the realities of cutting spending and changing labor law. His government is due to publish a multi-year budget strategy and enforce changes to labor law by late September.
“The labor market strategy is broad and ambitious—it would enhance enterprise-level flexibility, reform unemployment insurance, and improve professional training and apprenticeship systems,” the IMF said. “It should be complemented by continued wage moderation,” it added.
Macron Wins IMF Backing for ‘Ambitious’ Plans to Reform France Macron Wins IMF Backing for ‘Ambitious’ Plans to Reform France Reviewed by Alexander Von Stern on 07:32:00 Rating: 5