Beast as cabbage! In his traditional letter to the President of the Republic, accompanying the annual report of the Bank of France, François Villeroy de Galhau, the governor of the central bank had the following advice: make pedagogy. “ Reforming our country is not an easy task. There is obviously a necessary pedagogy to convince that this need can turn into action .” He had to think …
With this idea, the government certainly takes the martingale to appease the debates related to the El-Khomri law and its forced passage through Article 49.3 of the Constitution.
structural reforms needed
the rest of the letter to François Hollande, the Governor of the Bank of France remained more consensual. Inspired dozens of published reports on the subject of competitiveness, François Villeroy de Galhau invites the executive to “ amplify structural reforms ” to “ find stronger economic growth and job creation . “
How was it? The Governor of the Bank of France asked the government to act on four axes, axes previously identified by the OECD, the European Commission or the Court of Auditors, that is to say, business, employment, education and state. Either the “four E”. When the Bank of France is marketing …
To support the development of enterprises, François Villeroy de Galhau recommends to fight against the “ rigidities in markets for goods and services “deleting some” entry barriers “and facilitating” access to finance by equity . “
solutions employment
in the field of employment, he claims called for an end to “ rigidities ” that slow, he said, “ adaptation business “and” discourage hiring . ” Knowing that 90% of employment contracts are currently fixed term, the lack of labor market flexibility must be relativized.
“ Social dialogue must be renewed at the company, closer economic and human reality “, also wrote François Villeroy de Galhau. Unions headwind against reversing the standards prescribed in Project El-Khomri law, enjoy.
The Bank of France affected by reforms?
To improve the system education, it recommends better adapt training young people to business needs and to continue the reform of the state, by “ real choices missions .” The choice of missions that would also affect the Bank of France? The letter does not say. According to a study the Institute for Economic and Fiscal Research (IREF) published in 2014, the cost of banknote production is 34% higher than that displayed by the other central banks of the euro area, personnel costs of Bank of France were two times higher than the Bundesbank, which then had 4,000 employees over. As for salaries in the Bank of France, they are 24% higher than the Bundesbank …
“ In a more favorable economic environment in 2015, progress has been made “, however, recognizes the former deputy CEO of BNP Paribas.
” however, the road ahead is very significant “, he continued, citing “ persistent economic and social weaknesses “, as youth unemployment (24%) and a higher deficit than its European neighbors. For the record, the tricolor GDP grew by 0.5%, slightly higher than expected growth. However, in 2015, France has been lagging behind the euro area, with an annual growth of 1.2%, against 1.5% on average.
Always firmly opposed to any budgetary drift the Governor of the Bank of France advocates still and always the same solutions. In addition to the “ public expenditure control “, not detailed, it argues for “ redeployments ” increasing “ taxes on fossil fuels ” whose prices are low for “ alleviate those on work .” Very good ! But this proposal raises a question: if the price of fossil fuels rises? Moreover, this solution is not likely to break the semblance of recovery, knowing that it is declining energy prices which helped to support consumption and promote recovery of investment?
“ It is essential for the credibility of our country in Europe not to release anything of our fiscal discipline and spending well below the 3% deficit in 2017 ,” t says -he, explaining that these objectives could be achieved simultaneously without compromising our social model that for example Germany in 2000 and Spain in the 2010s.
these countries “ have able to lead major reforms, fully consistent with our common social model “, calling for” a new national debate on the occasion of preparing the next elections “election. In March, Spain, the unemployment rate amounted to 20.4% of the workforce. Youth unemployment rate reached 45.5% … In Germany, according to latest figures from Eurostat, the rate of poverty risk – the risk of poverty is 60% of median income, including welfare – .in Germany is 17%, as in the UK, against just over 13% in France.
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