Frances Socialist

Frances Socialist: In its annual assessment of Frances economy, the IMF said the country has made considerable progress in cutting spending, confirming its prediction that the deficit will drop to 3.9 per cent of the countrys gross domestic product in 2013, down from 4.8 per cent in 2012. The organization added it expected the economy to begin growing again in the second half of 2013, reflecting Europes increasing economic strength as well as reforms under Frances Socialist government, according to The Star. The IMF also said high unemployment coupled with rising taxes were sapping Frances ability to compete with its European neighbours and is eroding disposable income. Rather than raising taxes further Frances taxes are already some of the highest in the world the report called for streamlining public spending in social security and at the local level. A recent survey by the Organization for Economic Co-operation and Development recorded that income tax and other compulsory contributions, such as pension payments, made up 50 per cent of overall labour costs compared with almost 40 per cent in the United States and PARIS Frances rigid labour market, high taxes and inefficient public spending are dragging down its economy, the International Monetary Fund warned Monday in a report calling on the government to accelerate economic reforms. But the report nonetheless called on France to push on with much-needed relaxation of its labour markets. Frances rigid employment contracts make firing expensive and complex and many companies have become reluctant to hire. Unemployment stands at 11 per cent, according to Eurostats latest figures from June, up slightly from Mays 10.9 per cent. (www.immigrantscanada.com). As reported in the news.