OECD Economic Surveys.

Table of Content :

Executive summary
Assessment and Recommendadtions
-In the short term growth is set to remain weak and unemployment to rise further
-French banks have been resilient, but they suffer from some vulnerabilities
-Reducing the weight of public spending must be vigorously pursued
-The strengthening of the budgetary framework is welcome
-Improving the equity and efficiency of the tax and transfer system
-Frances poor export performance reflects generalised weakness on the supply side
-Boosting competition in product markets
-Reforming the labour market
-Improving the economic situation of young people
-Bibliography
-Annex. Progress in structural reform
Chapter 1. The efficiency and equity of the tax and transfer system
-Income inequality is relatively low, thanks to redistribution, and has been stable over time
-The French tax system is complex, changes frequently and induces serious distortions
-The taxation of labour is heavy despite substantial targeted measures
-Joint family income taxation may discourage female labour force participation
-Incentives for older workers to keep working can be further improved
-The mobility of high-income earners will limit the revenue yield of raising the top marginal tax rate.
-The taxation of capital
-Reduced VAT rates are an inefficient way to redistribute income
-A large dispersion of implicit carbon prices but good progress in internalising local pollution
-The transfer system should be simplified
-Conditionality of unemployment benefits should be strengthened
-Social transfers should be focused on getting beneficiaries into jobs
-Disability benefits are a potential channel of benefit substitution
-Family benefits are tilted towards those having at least three children
-The design of the parental leave allowance may push low-skill mothers into an inactivity trap
-Housing subsidies should be better integrated with the rest of the transfer system
-Old-age pension complexity should be reduced to facilitate necessary systemic reforms
-Survivors pensions lower female participation and discriminate against private-sector pensioners and unmarried people
-In-kind benefits: health-care and education services
-Bibliography
Chapter 2. Improving the economic situation of young people
-The priority for the Presidents term of office
-Starting from an already unfavourable position, young people have been hit by the crisis
-Enhancing the autonomy of young people
-Combating failure at school
-Young people in the higher education system
-Promoting youth employment and facilitating school-to-work transition
-Territorialisation of the issues affecting youths
-Bibliography