PARIS: The French economy could grow over 1.5% next year if the government steps up efforts to make France more competitive, the governor of the Bank of France said Tuesday.
We can get above 1.5% growth next year if we do bold reforms,” Mr. Noyer said on French radio station Europe 1. That level of growth would be sufficient to bring down unemployment, he said.
Mr. Noyer said the French government needs to go further in overhauling the labor market. The government should move toward creating a simplified work contract to help lift young people out of insecure jobs, and the minimum wage should be less rigid to stop it being a barrier to entering the labor market, he said.
We need to break with taboos in the labor market,” Mr. Noyer said. The governor of the Bank of France said it would be easier to make controversial changes to labor laws now rather than next year, just before the 2017 presidential elections.
If we want to do reforms, it’s now, straight away, it’s urgent,” Mr. Noyer said. Mr. Noyer, who is due to retire this year, also said France needs to continue with efforts to balance its budget.
We have a level of debt that is becoming worrying,” Mr. Noyer said.
