France : Lessons From Past Fiscal Consolidation Plans

Author/Editor: Edouard Martin ; Irina Yakadina ; Irina Tytell
Publication Date: April 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper analyzes past fiscal consolidation plans and their outcomes in France. It covers the early attempts at fiscal consolidation in the 1970s and the 1980s (Plan Barre and Virage de la Rigueur), the first episode of medium-term fiscal consolidation in 1994-97 ahead of joining the European Economic and Monetary Union, and the fiscal consolidation under the corrective arm of the European Stability and Growth Pact in 2003-07. These experiences offer important lessons for the future, suggesting that binding constraints help focus policymakers’ attention and justify their actions; spending restraint needs to be shared and coordinated across all levels of government; and appropriate deficit targets could help in enforcing budgetary discipline in good times.
Series: Working Paper No. 11/89
Subject(s): Budget deficits | Fiscal analysis | Fiscal consolidation | Government expenditures | Public debt | Revenues | Subsidies | Taxation

Author's Keyword(s): France | fiscal consolidation
Publication Date: April 01, 2011
ISBN/ISSN: 9781455233151/1018-5941 Format: Paper
Stock No: WPIEA2011089 Pages: 26
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