There Will Be Economic Reform in Paris By Nina Bharadwaj

     President Francois Hollande's socialist government has promised a flurry of reforms to attempt to fix the country's ills, although their economy has been hurt by their tax and industrial laws.
     President Hollande told his government that "France is facing a particularly difficult situation." There has been very weak growth because of the recession. The unemployment rate has risen constantly for two years.
     The prime minister of France, Jean-Marc Ayrault, has tried to help out by issuing a 5 page "programme of work" for his fellow ministers. He has promised 15 new laws and is also promising structural reforms that have been demanded by France's European neighbors.
     Mr. Ayrault promised to "profoundly renew the French model to adapt to the present...without renouncing our protective social system" in the Le Monde newspaper.
     He pointed out that several countries such as Germany and the Scandinavian states had survived the economic issues better than them. He said that "France must be more open to risk-taking, social and economic innovation and the creation of enterprises as much as artistic creation."
     Even with the promises of economic reforms, the French people doubt that the government will follow through. There is a debate in the policy of taxing the rich heavily.
     Approval ratings for Mr. Hollande and Mr. Ayrault have gone downhill since September to about 35%. One rating indicated that Mr. Ayrault's rating was at 30%.
     With all of the harsh criticism from the public, Mr. Hollande was pressured into showing his loyalty to Mr. Ayrault. Mr. Hollande said: "I reaffirm my confidence in him."
     In Mr. Ayrault's "Programme of Work", there have been many policy initiatives set forth. Many of which are already underway. Some of them include public finances, labour market reforms, industrial competitiveness, education, and housing. The priority is reducing the unemployment rate, which is continuing to rise.
     Mr. Ayrault has promised many details on how the government will cut their public spending by the spring. It has committed to save 60 billion Euros over 5 years. According to Mr. Ayrault, spending has "lost its effectiveness", rising from 52 to 56% over the past 5 years. However, the quality of life has not gotten better.
     The government has said that it will get rid of inefficient practices but has not provided details on reforming the welfare programmes.
     Mr. Ayrault said there would be reforms of France's strict labour market regulation by the end of the first quarter.
     Mr. Ayrault has made it clear that businesses would have to compromise in exchange for increased flexibility in business practices.
Analysis: The author of this article, Hugh Carnegy, wrote this article to inform us about France's economy. There was no sense of bias in this article, only hard facts. The main idea of the article is that France's government promises that the economy will improve even with the doubts of the citizens.
I think that it is good that the government is trying to take the initiative in trying to fix the economy. I would have to be a little skeptical if I lived in France because the economy has been decreasing for so long and I don't know how it would change so quickly. I hope that the economy improves soon and the unemployment rate decreases.
Source: http://edition.cnn.com/2013/01/03/business/france-economic-reforms/index.html?hpt=ieu_c2