The Governor of the Bank of France calls for accelerating reforms – L’Express

“ In a more favorable economic environment in 2015, progress has been made ,” admitted Mr. Villeroy Galhau, presenting his traditional letter to the President of the Republic, accompanying the report annual Report of the Bank of France.

“ However, the road ahead is very significant ,” the governor added, citing “ persistent economic and social weaknesses ” as youth unemployment (24%) and a higher deficit than its European neighbors.

France recorded in the first quarter growth of 0.5% higher than expected, suggesting an economic upturn in 2016. But growth remains below that of the euro area, 1.3 % in 2015 against 1.5% on average.

“ For too many years, the French performance was disappointing ” Judge the central banker. For this reason, “ a substantial amplification of reforms “, including “ structural reforms ” is “ required “, adds the one that was chosen by Hollande to succeed in November, Christian Noyer.

The Governor of the Bank of France, for it invites the executive to act in four areas, also identified by the OECD, the European Commission or the Court of Auditors: business, employment , education and the state – the “ four E .”

Regarding business, Mr. Villeroy Galhau advocates to fight against the “ rigidities in markets for goods and services “, removing certain “ barriers to entry “and facilitating access to finance by equity.

On the job, he calls to end the “ rigidities ” that slow, he said, “ Business adaptation ” and ” discourage hiring . ” “ Social dialogue must be renewed at the company closer to the economic and human reality ,” he insists.

– “ essential pedagogy ” –

This position is involved in a conflict on the labor law, adopted without a vote after recourse to Article 49 -3 and challenged by the street who just plans to decentralize social dialogue for more “ flexibility .”

This “ brings welcome progress ,” Judge M. Villeroy Galhau, for whom the “ status quo ” would not be a good solution . “ Reforming our country is not an easy task “, he nevertheless acknowledged. “ There is clearly an essential pedagogy to convince that this need can turn into action .”

With regard to education, the Governor of the Bank of France advocates to better adapt training young people to business needs and to continue the reform of the state, by “ real choices missions . ”

It is possible to carry out “ redeployments “, increasing “ taxes on fossil fuels “, the prices are low for “ alleviate those on work “, and considers the governor, which emphasizes the “ public expenditure control .”

The government is committed to reducing the deficit in 2016 at 3.3%, after 3.6% this year. But the Executive has announced since the beginning of the year a series of new measures that concern the opposition to expenditure overruns.

“ 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 ” insists the former director of cabinet of Dominique Strauss-Kahn.

A set of objectives that can be achieved simultaneously, and without compromising our social model, according to the central bank, which uses the example of Germany 2000 and Spain 2010s

These countries “ were able to carry out major reforms, fully consistent with our common social model ,” he says. By inviting “ a new national debate ” to mark “ preparing the next elections ” election.