“We must follow the example of countries such as Germany and Sweden, who have experienced difficult times and made many reforms,” said the winner during a press conference in Stockholm .
He stressed the need for France to “follow the example set by that particular country where we are.”
Structural Reforms in 90
In the 90s, Sweden has gone through a severe financial crisis. To save what could be, it undertook extensive structural reforms.
The country was then abandoned his employment subsidies or housing, thoroughly reformed its pension system, reduced health costs.
Between 2006 and 2014, the Conservative government led liberal reforms to the charge, including the decrease in the tax burden (including the abandonment of inheritance), and stricter conditions for unemployment allowances or daily allowances in case of sickness.
The ratio of public expenditure on gross domestic product, mounted to a record 71% in 1993, is aujourd ay 53%
According to the Standard & amp financial reporting agency.; Poor’s, the Swedish economy is “prosperous, competitive and diversified.” Sweden has one of the public debt among the lowest in Europe (expected 42.5% of GDP this year) and very low borrowing rates.
“Looking Ahead”
Jean Tirole, France must “prepare for the future.” “We need to make reforms for people returning to work, for example the unemployment rate in France is very high (…) and also reform the state that many countries have done,” he has said.
In France, the unemployment rate rose to 10.4% in the third quarter. “If you do not have a viable economy, your debt increases, etc., and then at some point you have to end the welfare state which in my opinion would be disastrous,” warned the economist.
However, it has wanted positive. “I would not be France if I did not believe in France,” he has said. In 2003, he proposed a series of radical reforms of the labor market in France, considering in particular the need to create a “single employment contract” abolishing the distinction CDI / CDD.
Despite its economic health, Sweden is currently uncertain. The country is struggling with an unprecedented political crisis after a show of force feeding far right of the malaise of a part of society that complains of a now less generous social model.
Fort 49 seats in Parliament, the extreme right has managed to render inoperative in only two months left government coalition by voting the opposition budget. To overcome this situation, the Social Democratic Prime Minister announced elections for March 22.
Jean Tirole is the third French to receive the Nobel Prize in economics. He is president of the Foundation Jean-Jacques Laffont-Toulouse School of Economics (TSE), which claims to be “one of the top ten economic research centers in the world.”
The award will be Wednesday Stockholm from King of Sweden, Carl XVI Gustaf, together with the other winners, 2014, with the exception of those who receive the peace in Oslo.
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